Moody's turns HireRight view to negative

Moody's Ratings said it concluded its review of HireRight Holdings Corp.'s ratings, confirmed the B2 ratings on the company and its backed senior secured first-lien credit facility ratings issued under Genuine Financial Holdings, LLC and assigned a negative outlook to both entities. Previously, the ratings were on review for downgrade. The company's speculative grade liquidity rating is unchanged at SGL-1. The agency started the review on Feb. 22.

“Today's rating and outlook actions reflect the sizable increase in HireRight's debt related to the funding of the company's proposed privatization with the proceeds of $250 million in incremental first-lien term loan borrowings that will increase the term loan outstanding to $1 billion. The proposed financing will increase the company's debt-to-EBITDA by approximately 1.5x to nearly 6.2x as of Dec. 31, 2023 (Moody's adjusted and pro forma for the incremental term loan), adding credit risk and augmenting Moody's existing governance concerns,” the agency said in a press release.

Moody’s said it does not see HireRight cutting its debt to EBITDA “meaningfully below 6x in 2024.”

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