S&P puts Ryan Specialty on positive watch

S&P said it placed its B ratings on Ryan Specialty Group LLC on CreditWatch with positive implications.

The placement follows Ryan reporting it filed a confidential S-1 with the SEC, indicating the potential for an IPO later this year, the agency said.

“As a result, we expect that a mandatory redemption event would be triggered for the preferred units – which we currently treat as debt – that could improve financial leverage for the company per our calculations. If the IPO is successful, we think the preferred units would be replaced with common units, improving S&P adjusted financial leverage by at least one turn based on the 2020 differential of financial leverage including and excluding the preferred units,” the agency said in a press release.

S&P said if the IPO is completed it will review how the company uses the proceeds to reassess its capital structure and financial leverage per our calculations.

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