S&P zaps ZipRecruiter

S&P said it lowered all its ratings for ZipRecruiter Inc. a notch, including its senior unsecured notes to B+ from BB-.

“The downgrade reflects our forecast for rapidly rising leverage in 2024 as ZipRecruiter invests in sales and marketing. While we expect the hiring environment to stabilize in 2024 and end ZipRecruiter's double-digit declining revenue trend by the end of the year, we now expect its marketing activities to ramp up quickly to capture market share,” the agency said in a press release.

On the plus side, S&P said it expects a return to growth and widening in margins in 2025, which should enable the company to cut its leverage to under 5x.

The outlook is negative.

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