Moody's moves Stagwell view to positive

Moody's Investors Service said it changed Stagwell Global LLC's outlook to positive from stable and affirmed Stagwell's B1 corporate family rating, B1-PD probability of default rating and B2 senior unsecured notes rating. The speculative grade liquidity rating remains unchanged at SGL-2. At the same time, Moody's assigned a B1 CFR, B1-PD PDR, and SGL-2 rating and a positive outlook to the issuer's parent, Stagwell Inc.

After this action, the agency said it will withdraw the CFR, PDR and SGL rating at Stagwell Global. Since Stagwell Global is the main operating entity but does not file financial statements, Moody's relies on Stagwell Inc.'s financial statements for the ratings. Hence the reassignment of the CFR, PDR and SGL to Stagwell Inc. The instrument ratings will remain at Stagwell Global because it is the borrower.

"The positive outlook reflects our expectations that growing scale, improved operating profile and recent cost reduction measures will support Stagwell in maintaining financial leverage below 4x at year-end-2023 and through 2024, despite macroeconomic pressures," said Mikhil Mahore, a Moody's analyst, in a press release.

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