Moody's: Vertafore loans B1

Moody's Investors Service said it assigned B1 (LGD3, 35%) ratings to Vertafore, Inc.'s new senior secured revolving credit facility and term loan. The company has a B2 long-term rating, and the outlook is stable.

The proceeds will refinance Vertafore's existing senior secured credit facilities.

The agency said Vertafore's 7.2 times debt-to-EBITDA ratio is high, especially given its small scale and concentrated business profile as a niche provider of software for the property and casualty insurance market.

Nonetheless, Vertafore generates relatively predictable cash flows, Moody's said, and the stable outlook reflects the agency's expectation that Vertafore will maintain its market position and will generate gradually increasing free cash flow and profitability over the near term.

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