Fitch gives BBB to IHS Markit notes

Fitch Ratings said it assigned a BBB rating to IHS Markit Ltd.'s $500 million senior unsecured due 2025.

Net proceeds, along with proceeds from a recent $500 million 364-day senior unsecured term loan due Jan. 25, 2018, are expected to be used for general corporate purposes, including debt repayment and share repurchases.

The notes will be guaranteed on a senior unsecured basis by all subsidiaries that are borrowers or guarantors under the senior credit facilities.

On Jan. 30, IHS Markit amended its share repurchase authorization to up to $2.25 billion through May 31, 2018 from up to $1.5 billion through Nov. 30, 2017. The increase will allow for the company's previously communicated commitment to repurchase up to $1.2 billion of its shares in 2017 and $1 billion in 2018, funded through a combination of FCF and additional debt capacity created through EBITDA growth.

IHS Markit's rating was not affected by this action.

Fitch said it continues to view the merger between IHS, Inc. and Markit Ltd. positively. Markit accelerates IHS' push into financial services, reduces IHS' concentration in the resources space from 40% of consolidated revenues to 27%, provides a CEO succession plan, and represents a delevering event for IHS.

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