Fitch assigns FactSet, loans, notes BBB

Fitch Ratings said it assigned FactSet Research Systems Inc. a first-time long-term issuer default rating of BBB. The agency also gave BBB issue ratings to FactSet's $500 million amended revolving credit, new $1 billion term loan and $1 billion note issuance.

The rating action follows FactSet reporting financing plans for its acquisition of Cusip Global Services from S&P Global, Inc. for $1.925 billion. “Fitch views CGS's acquisition positively, as it provides additional diversification with proprietary products that are critical to the functioning of capital markets, have minimal competition and offer significant recurring revenues,” the agency said in a press release.

“FactSet has generated relatively consistent growth across a number of operating metrics, even during the pandemic. Fitch expects the growth to continue over the rating horizon. Total revenues have grown mid- to high-single digits quarterly, with the quarter ended May 31, 2020, the only outlier, when it slowed to 2.6% during the pandemic's initial stages. Client counts grew to more than 6,500 as of Aug. 31, 2021, from approximately 4,700 at Aug. 31, 2017, an 8% four-year CAGR,” the agency said.

The outlook is stable.

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