S&P rates Equifax notes BBB+

S&P said it assigned a BBB+ rating to Equifax Inc.'s proposed $500 million five-year senior unsecured notes due 2021 and $275 million 10-year senior unsecured notes due 2026.

The proceeds from the notes will be used to repay an unrated 364-day revolving credit facility and a portion of the borrowings it incurred under its commercial-paper program to finance its acquisition of Veda Advantage Ltd., S&P explained.

The company’s corporate credit rating and outlook are not affected by the transaction, the agency said.

Although S&P said it expect pro forma leverage to modestly exceed 3x in the fiscal year ending Dec. 31, 2016, the agency said it also expects the company to use free cash flow to reduce leverage to no more than 2x by the end of 2017.

The ratings are based on the company's satisfactory business risk profile, distinguished by its strong market position in the global credit reporting and analytics industry, S&P said.

The company’s financial risk profile is considered modest, the agency said, supported by an expectation for solid free cash flow generation, the agency added.

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