Moody’s views Legal Search negatively

Moody’s Investors Service said it revised its outlook for Legal Search Holdings Pty Ltd. to negative from stable and affirmed the B2 ratings on the company, its backed senior secured first-lien term loan and Caa1 backed senior secured second-lien ratings on the loans of ATI US Holdings Inc. and Legal Search as co-borrower.

“The negative outlooks on the ratings reflect Moody's expectation that rising interest rates and considerable uncertainty in the Australian and U.K. property markets will make it more challenging for Legal Search to de-lever back to the rating tolerance threshold of 7x over the next 12-18 months,” the agency said in a press release.

Moody's said it sees rising interest rates will lead to the company's EBITA/interest deteriorating to around 1.4x-1.5x over the same period.

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