Moody’s revises TES Global to negative

Moody's Investors Service said it changed the outlook for the TES Global Holdings Ltd., and TES Finance plc, to negative from stable.

Concurrently the agency affirmed TES' Caa1 corporate family rating, Caa1-PD probability of default rating and the Caa1 instrument ratings on the £200 million senior secured notes due 2020 and the £100 million senior secured floating-rate notes due 2020 issued by TES Finance.

Moody’s said the outlook change reflects the ongoing pressure on the company's performance as a result of declining volume in its transactional advertising business and limited visibility on any potential near-term stabilization as conditions continue to remain challenging for schools across the U.K.

TES' positive inroad into subscription model has not been able to offset the impact of the 22% volume decline of its transactional advertising business during the first nine months of fiscal year 2017, the agency added.

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