Moody’s lowers Acrisure view to negative

Moody’s Investors Service said it affirmed the B3 corporate family rating and B3-PD probability of default rating of Acrisure, LLC

The affirmations follow recent and pending increases in the company’s borrowings, including $260 million of newly rated delayed draw term loans and a $29 million add-on to its main first-lien term loan, Moody’s said.

The proceeds, along with cash on the balance sheet, will be used to fund recent and pending acquisitions, repay revolving credit facility borrowings and pay fees, expenses and other costs associated with these transactions, the agency said.

Moody’s also affirmed the B2 ratings on Acrisure’s existing first-lien credit facilities and the Caa2 rating on its existing second-lien term loan.

The outlook for Acrisure also was revised to negative from stable, reflecting the accelerated pace of acquisitions funded substantially with debt and the meaningful integration and contingent risks associated with such an aggressive growth strategy, the agency said.

The proposed borrowing increases Acrisure’s debt burden relative to expectations, Moody’s said.

The outlook revision reflects the higher financial leverage combined with heightened uncertainty surrounding the recognition and sustainability of acquired EBITDA, given the increased pace of acquisitions, the agency said.

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