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Published
04 April 2022
Read time
2 minutes

TMF Group credit rating upgraded by Moody’s

Moody's Investors Service (Moody’s) has upgraded TMF Group’s corporate family rating (CFR) to B2 with stable outlook. This reflects expectations for continued improvement in TMF Group's operating performance, cash flow and credit metrics.

Moody's upgraded to B1 from B2 the instrument ratings of the €950 million backed senior secured first lien term loan and the €150 million backed senior secured first lien revolving credit facility (RCF). It also upgraded to Caa1 from Caa2 the instrument rating on the €200 million backed senior secured second lien term loan.

TMF Group's B2 CFR benefits from the company's resilient business model, with around 90% of recurring revenue, and its low sensitivity to the business cycle. Furthermore, the low capital requirements inherent in the company's business model support good free cash flow (FCF).

The rating upgrade is driven by TMF Group’s good execution with respect to organic growth, complemented by selective bolt-on M&A, while strict cost control contributed to significant EBITDA gain and positive FCFs in 2020 and 2021, resulting in lower leverage and good liquidity.

Another factor that contributed to positioning TMF Group as stable is the established track record of long-standing customer relationships, which create barriers for competitors to entry. TMF Group’s global presence in 85 jurisdictions also means the company is well-positioned to take advantage of cross-selling opportunities with existing clients in new locations.

We are very satisfied by the latest rankings published by Moody’s. This is the result of the journey started by the company some years ago, as our annual results demonstrate. We are glad to be perceived as a stable and resilient business. We will keep working to achieve the best results and to offer a secure workplace to our employees.

Mark Weil CEO | TMF Group
Media Contacts

TMF Group:
Giampaolo Arghittu, Senior Global External Communications Manager
giampaolo.arghittu@tmf-group.com 
T: +39 334 947 95 84