Moody’s moves Qualtric view to negative

Moody’s said it changed its outlook for Quartz AcquireCo, LLC (Qualtrics) to negative from stable and affirmed the B1 ratings on the company and its senior secured debt.

Qualtrics is boosting its term loan facility for general corporate purposes including repaying revolver borrowings.

“The change in outlook to negative reflects revenues, EBITDA and cash flow that are well behind Moody's expectations, weakened liquidity and delays in getting to metrics appropriate for the B1 rating level. While the company has grown revenues since the acquisition by Silver Lake in June 2023, revenue growth was around half the levels originally expected which has negatively impacted EBITDA and cash flow.

“In addition, employee stock obligations (RSU) at closing were higher than expected which led to elevated payments in Q3 and Q4 2023 and will result in higher-than-expected required payments in 2024,” the agency said in a press release.

Moody’s said it forecasts negative free cash flow for the company in 2024.

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