Moody’s shifts BMC view to negative

Moody’s Investors Service said it revised the outlook for BMC Acquisition Inc. (BenefitMall) to negative from stable but affirmed its ratings, including the B2 senior secured ratings.

“The outlook revision to negative reflects BenefitMall’s smaller scale and more concentrated business profile following the divestiture of the payroll business, higher expected debt leverage, history of aggressive liquidity management, and macroeconomic uncertainty. The affirmation reflects BenefitMall’s improved liquidity and margin profile as a result of the sale of BenefitMall’s payroll business to Automatic Data Processing, Inc. (ADP) and ongoing organic revenue growth,” Moody’s said in a press release.

The agency said it forecasts debt to EBITDA will be 6.1x at the end of 2021 – an increase from 5.4x as of the end of September.

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