DBRS Ltd confirmed Thomson Reuters Corp.'s issuer rating at BBB (high) after the company agreed to sell a 55% stake in its financial and risk business to private equity funds managed by Blackstone Group LP and other investors.
The rating's trend is stable.
DBRS said Thomson Reuters will be less diversified in terms of operating verticals and geographic exposure. The agency believes that the company has an opportunity to improve future growth rates compared with the last five years through analytical services and improvements to the digital customer interface.
DBRS concluded that the strategic partnership with Blackstone related to the financial and risk business, the forthcoming 30-year news contract involving Reuters News and the new entity, the proposed capital structure transactions and the company's continued prioritization of an acceptable level of leverage are sufficient to keep Thomson Reuters at its current ratings, but situated lower within the ratings category.
