Moody’s rates Acrisure loans B2, Caa2

Moody's Investors Service said it affirmed the B3 corporate family rating and B3-PD probability of default rating on Acrisure, LLC following news of the company's management-led buyout alongside Abry Partners and a consortium of minority investors.

Moody's also said it assigned a B2 rating to the company’s first-lien credit facilities and a Caa2 rating on its second-lien credit facilities.

The agency also said it will withdraw the ratings from Acrisure's existing credit facilities upon closing of the recapitalization.

The outlook is stable.

The ratings reflect the company’s growing market presence in U.S. insurance brokerage, good mix of business across property and casualty insurance and employee benefits, healthy EBITDA margins and diversified funding sources for acquisitions, including internally generated cash, committed bank credit facilities, committed preferred stock drawdown facility and common equity, Moody’s said.

Offsetting these strengths is the company's rising debt burden, driven by its aggressive acquisition strategy, resulting in persistently high financial leverage, the agency said.

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