Fitch alters FactSet outlook to positive

Fitch Ratings said it changed FactSet Research Systems Inc.'s outlook to positive from stable and affirmed its BBB issuer and senior unsecured issue ratings.

“The actions are driven by FactSet's continued overall operating performance improvements while integrating the CUSIP Global Services' (CGS) acquisition. In addition, since completing CGS's debt-funded acquisition on March 1, 2022, the company allocated sufficient FCF to drive Fitch-calculated leverage below 2.5x for the LTM Feb. 28, 2023, ahead of Fitch's expectations,” the agency said in a press release.

Fitch noted FactSet’s “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 7,700 as of Feb. 28, 2023, from approximately 4,700 at Aug. 31, 2017, a 12% CAGR while ASV grew to $2.1 billion from $1.3 billion, an 11% CAGR.” ASV stands for annual subscription value.

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