S&P moves Duff & Phelps view to negative

S&P said it revised its outlook for Duff & Phelps Holdings Corp. (Kroll’s) to negative from stable and affirmed all its ratings, including the B- issuer rating.

“The outlook revision reflects our view that rising interest rates will continue to limit cash flow generation despite expected improvement to operating performance. We expect strong momentum in restructuring activity to drive revenue growth in the 10% area and EBITDA to grow at a faster clip in the 15%-20% area due to a more favorable business mix and recent cost-saving programs.

“However, we believe the company's significant interest rate exposure, despite approximately two-thirds of outstanding debt hedged, will offset operating performance improvement such that the company approaches breakeven levels of free operating cash flow (FOCF) in 2023,” S&P said in a press release.

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