Moody's on Aug. 8 upgraded S&P Global Inc.'s senior unsecured rating to A3 from Baa1.
The outlook is "stable."
The upgrade is based on the company's commitment to maintain approximately 2x leverage of debt/EBITDA, Moody's said. Additionally, according to the rating agency, the company has adequate financial flexibility to keep its commitment through EBITDA margins of more than 50%, about 45% conversion of EBITDA into after-dividend free cash flow, and solid liquidity arrangements.
The rating agency also said the company has a durable business model with reasonable growth prospects, which boost management's ability to maintain modest leverage.
S&P Global Inc. owns S&P Global Market Intelligence.