Moody’s cuts Explorer Holdings

Moody's Investors Service said it downgraded Explorer Holdings, Inc.'s (eResearch Technology) corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD.

The agency also downgraded the rating for the company’s first-lien senior credit facilities that comprises of $45 million revolving credit facility expiring in 2021 and $873 million of term loan due 2023 to B2 from B1.

The outlook is stable.

"The downgrade reflects the company's high leverage driven by aggressive financial policies focused on driving growth with debt-funded acquisitions,” Moody's analyst Joanna Zeng O'Brien said in a news release.

“Pro forma for the 2017 acquisitions, Moody's adjusted debt-to-EBITDA approximates 7.1x, which is more in-line with a B3 rating level."

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