{"id":49767,"date":"2018-10-05T21:46:00","date_gmt":"2018-10-06T01:46:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=49767"},"modified":"2025-08-25T21:47:05","modified_gmt":"2025-08-26T01:47:05","slug":"tri-pr-b-downgraded-to-p-3high-by-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=49767","title":{"rendered":"TRI.PR.B Downgraded to P-3(high) by S&#038;P"},"content":{"rendered":"<p>Standard &#038; Poor&#8217;s <a href=\"https:\/\/www.standardandpoors.com\/en_US\/web\/guest\/article\/-\/view\/type\/HTML\/id\/2109833\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>\u2022Toronto-based information services company Thomson Reuters Corp. completed the sale of its Financial &#038; Risk (F&#038;R) business, selling a controlling 55% equity interest to Blackstone Group alongside affiliates of Canada Pension Plan and GIC).\n<li>\u2022We view the divesture of the F&#038;R business, which accounted for more than half of Thomson Reuters&#8217; consolidated revenue and EBITDA in 2017, as a loss of the scale and diversification benefits that we previously factored into our rating.\n<li>\u2022We are lowering our issuer credit rating on Thomson Reuters and our senior unsecured issue-level ratings by one notch to &#8216;BBB&#8217; from &#8216;BBB+&#8217;. We affirmed our &#8216;A-2&#8217; short-term commercial paper rating.\n<li>\u2022The stable outlook reflects our expectation for modest organic revenue growth in the low- to mid-single-digit percentage range, EBITDA margins steadily rise to the mid-20% over the next two years as the company reduces costs and improves its operating efficiency, and that the company will maintain adjusted debt to EBITDA leverage below 3x.<\/ul>\n<p>NEW YORK (S&#038;P Global Ratings) Oct. 4, 2018&#8211;S&#038;P Global Ratings today lowered its long-term issuer credit rating on Toronto-based information services company Thomson Reuters Corp. to &#8216;BBB&#8217; from &#8216;BBB+&#8217; and affirmed its &#8216;A-2&#8217; short-term issuer credit rating. The rating outlook is stable. We also lowered the issue-level ratings on the company&#8217;s senior unsecured debt to &#8216;BBB&#8217; from &#8216;BBB+&#8217;. We removed the ratings from CreditWatch negative, where we placed them n Jan. 31, 2018, following the company&#8217;s announcement of the sale of majority stake in its F&#038;R business. <\/p>\n<p>We also lowered our Canadian scale preferred share rating to &#8216;P-3(High)&#8217; from &#8216;P-2(Low)&#8217;, lowered our preferred share issue rating to &#8216;BB+&#8217; from &#8216;BBB-&#8216; and affirmed our &#8216;A-2&#8242; short-term rating on the company&#8217;s U.S. commercial paper facility. <\/p>\n<p>The downgrade reflects the divesture of the F&#038;R business, which accounted for more than half of Thomson Reuters&#8217; consolidated revenue and EBITDA in 2017. As a result of this sale, we believe the company is losing the scale and diversification benefits that we previously factored into our rating.<\/p>\n<\/blockquote>\n<p>As reported on PrefBlog, <a href=\"http:\/\/prefblog.com\/?p=36134\">S&#038;P placed TRI on Watch-Negative<\/a> in January, 2018. DBRS <a href=\"http:\/\/prefblog.com\/?p=23512\">downgraded the issue to Pfd-3(high)<\/a> in October 2013.<\/p>\n<p>The sole affected issue is TRI.PR.B<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Standard &#038; Poor&#8217;s has announced: \u2022Toronto-based information services company Thomson Reuters Corp. completed the sale of its Financial &#038; Risk (F&#038;R) business, selling a controlling 55% equity interest to Blackstone Group alongside affiliates of Canada &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-49767","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49767","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49767"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49767\/revisions"}],"predecessor-version":[{"id":49768,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/49767\/revisions\/49768"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}