Moody’s affirms Consensus Cloud Solutions’ B2 rating, downgrades notes
Moody’s Ratings has affirmed the B2 corporate family rating (CFR) of Consensus Cloud Solutions, Inc. while downgrading the company’s senior unsecured rating to B3 from B2, with a stable outlook, News.az reports citing Investing.
The rating action follows Consensus Cloud Solutions’ closing of a $225 million senior secured credit facility, which includes a $75 million revolving credit facility expiring July 2028 and a $150 million delayed draw term loan due July 2028.
The cloud fax services provider plans to fully draw down on the delayed draw term loan to repurchase a portion of its unsecured notes due 2026 when they become callable at par on October 15, 2025. The company is expected to use cash on hand and/or revolver drawings to repay the remaining balance of these notes.
Moody’s explained that the downgrade of the senior unsecured instruments reflects the increased mix of senior secured debt in the capital structure and the expected reduction of loss absorption when the unsecured notes are repaid.
The affirmation of the B2 CFR is based on expectations that Consensus’s revenue trends will improve over the next 12 months despite continued declines in the small office home office (SoHo) segment. This decline is partially offset by continued revenue growth in the Corporate segment.
Moody’s noted that Consensus’s B2 CFR is constrained by moderately high debt/EBITDA of 3.4x as of March 31, 2025, small scale relative to other healthcare software as a service companies, and concentration around its cloud fax offering.
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