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Moody's places Thomson Reuters on review for downgrade

Moody's has placed Thomson Reuters Corp.'s Baa2 senior unsecured rating on review for downgrade following its agreement to sell a 55% stake in its financial and risk division to a Blackstone Group LP-led investor group.

The agency also changed the outlook to under review from stable.

Moody's expects any potential downgrade of Thomson Reuters' senior unsecured rating to be limited to one notch, and the agency said its review will focus on Thomson Reuters' organic revenue growth profile, business focus, smaller scale, geographic exposure and capital allocation strategy after the financial and risk division disposition.

The review will also examine the potential for improved organic revenue growth over the rating horizon following the disposition. However, Moody's expects Thomson Reuters to maintain good liquidity over the next 12-18 months.

The rating agency expects to conclude the review at or near the timing of transaction closing, which Thomson Reuters anticipates will occur in the early part of the second half of 2018.