Moody's downgrades Edelman

Moody's Investors Service said it downgraded Edelman Financial Engines, LLC's corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD. Moody's also downgraded Edelman's first-lien senior secured credit facilities, which consist of a $1.44 billion term loan and a $150 million revolving credit facility, to B2 from B1. Additionally, Moody's downgraded Edelman's $475 million second-lien term loan to Caa2 from Caa1. The outlook is stable.

“The downgrade reflects our expectation that the extreme market declines and increasing economic uncertainty unleashed by the coronavirus outbreak will have a significant impact on Edelman's revenues and earnings in 2020. Consequently, Moody's expects that Edelman's leverage (adjusted debt/EBITDA) could increase to the 7x-8x range in 2020 from 6.5x at year-end 2019,” said the agency in a press release.

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