S&P upgrades Verisk

S&P said it raised the ratings on Verisk Analytics Inc. to BBB from BBB-.

The agency also said it assigned an A-2 short-term rating to the company.

The upgrade is based on Verisk's strengthening competitive position and an increased confidence that the company is committed to maintaining debt leverage of about 2.5x, S&P said.

The company has a solid track record of diversifying its product portfolio while sustaining its substantial profit margins and quickly reducing leverage, the agency said.

This was evidenced by its large 2015 debt-financed acquisition of Wood Mackenzie, S&P noted.

This acquisition increased leverage to the mid to high-3x range and Verisk was able to lower it to 2x in 12 months, despite a very difficult selling environment, the agency said.

The stable outlook reflects an expectation that Verisk will maintain its good operating performance and its financial policy discipline over the next 12- to 24-months, S&P added.

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