Moody's on Aug. 9 placed on review for downgrade Paysafe Group Plc's Ba2 corporate family rating and Ba3-PD probability of default rating.
Moody's said the move reflects the significant increase in Paysafe's leverage pro forma for its acquisition by funds managed and/or advised by Blackstone Group LP and CVC Capital Partners. As part of the review, the agency said it will evaluate the group's new ownership structure, strategic objectives and financial policy, including the use of proceeds from the disposal of its Paysafe Merchant Services Ltd. business, which will take place upon completion of the deal.
The agency said it will conclude the review after the closing of the transaction, which is expected in the fourth quarter, subject to shareholders' approval. Moody's said it expects a potential multi-notch downgrade, if the transaction closes as anticipated.
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