S&P raises Sedgwick

S&P said it upgraded its ratings for Sedgwick LP and Sedgwick Claims Management Services Inc.’s term loan revolver to B+ from B.

“Growth and diversification initiatives have been successful. With revenues of approximately $4.5 billion as of the last 12 months ending second quarter 2023, Sedgwick has a well-established position as the leading insurance third-party administrator. Through organic and inorganic initiatives over the years, the company has materially diversified its revenue base and successfully broadened its offerings through expanding its core market, specialty and ancillary services, and new and emerging markets,” S&P said in a press release.

The agency added, “Absent any material acquisition or recapitalization events, we expect the company to continue to de-lever modestly over the next 12 months, with leverage of 5x-6x, and coverage around 2x through year-end 2024.”

The outlook is stable.

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