Rating agency cuts broking group’s credit rating to B3 from B2 after ‘volatility’
Cooper Gay Swett & Crawford (CGSC) chief executive Toby Esser has insisted his firm is “in great shape” after rating agency Moody’s downgraded the broking group’s debt rating.
Moody’s said it cut the rating to B3 from B2 because of “challenges in certain international operations, leading to a decline in projected revenues and EBITDA [earnings before interest, tax, depreciation and amortisation]”.
Esser said: “It is disappointing to see that some volatility we have experienced in our international units in 2013 has resulted in a downgrade, as we are confident these are short term in nature.
“Nevertheless, we enter the latter part of the year and into 2014 in great shape. We have just completed the NMB transaction which complements and strengthens our UK business enormously. We also have a number of further potential value-added investments under way.”
He added: “Despite the downgrade, our financing costs and investment firepower remains unaffected and we retain strong and supportive equity partners. CGSC remains very hungry for further growth opportunities.”