Moody’s gives B1 to GreenSky, facilities

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to GreenSky Holdings, LLC.

The agency also assigned B1 ratings to the proposed revolver and first-lien term loan.

The outlook is stable.

Proceeds will be used to repay the company’s existing term loan.

“The B1 CFR reflects GreenSky's moderate financial leverage (less than 2.5x debt to EBITDA on a Moody's adjusted basis), relatively small scale compared to compared to larger and financially stronger payment processors (including the card networks, largest credit card issuing banks, and merchant acquirers) and the potential for increasing pricing pressure and promotional activity in a highly competitive and rapidly evolving fintech industry,” Moody’s said in a news release.

“In addition, GreenSky's sales volumes may be susceptible to an economic downturn as high-end discretionary consumer spending could pull back while banks tighten credit limits and reduce lending activity.”

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