Moody's downgrades Greenhill

Moody's Investors Service said it downgraded to B1 from Ba3 the senior secured debt rating and corporate family rating of Greenhill & Co., Inc.

“The rating action reflects the growing refinancing risk, which Greenhill is facing in light of its upcoming April 2024 loan maturity as well as a more challenging operating and market environment. Despite a robust pipeline of M&A transactions on which it is advising, heightened market volatility and a regulatory challenge for one deal have led to a slowdown in deal completions.

“As a result, Greenhill's financial performance in 2022 was weaker than expected, with pre-tax earnings of only $5.1 million, EBITDA of $30.4 million and a pre-tax margin of 2% (all on a Moody's-adjusted basis). In addition, while completion of the delayed transactions will likely boost first half of 2023 results compared with the first half of 2022, the outlook for the remainder of 2023 is less assured given the uncertain economic environment, fragile investor confidence, and the risk that financial conditions will remain tight for a longer period of time,” Moody’s said in a press release.

The outlook remains negative.

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