Moody’s changes Ancestry.com view to stable

Moody's Investors Service said it revised the outlook on Ancestry.com Inc. to stable from negative, saying it expects Ancestry.com to have lower leverage and stronger free cash flow to debt than the agency had expected.

Ancestry.com decided to cut the size of its partially debt-funded dividend. Planned debt proceeds were cut to $350 million from $550 million.

“The debt-funded dividend remains aggressive, but Ancestry's commitment that they will not undertake any further leveraging transactions that would push debt-to-EBITDA above 5.0x on their basis will keep leverage within our expectations for the rating,” said Harold Steiner, Moody's lead analyst for Ancestry.com, in a news release.

Moody’s affirmed Ancestry.com’s B2 corporate family and B2-PD probability of default ratings.

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