Moody's trims ANGI Group

Moody's Investors Service said it downgraded ANGI Group, LLC's corporate family rating to B2 from B1, probability of default rating to B1-PD from Ba3-PD and senior unsecured notes rating to B2 from B1. The speculative grade liquidity rating is unchanged at SGL-2.

“The ratings downgrade reflects Moody's expectation that Angi will experience delayed deleveraging, a protracted period of weak earnings and continued negative free cash flow (FCF) over the next 12-18 months driven chiefly by our current expectation that the U.S. economy will likely contract in a couple of quarters of 2023. The recessionary pressures combined with rising interest rates and high inflation will likely lead to reduced consumer spending on discretionary home services as well as a meaningful slowdown in advertising revenue growth,” the agency said in a press release.

The outlook remains negative.

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