Moody’s Ratings has affirmed the B2 corporate family rating (CFR) of Consensus Cloud Solutions, Inc. while downgrading the company’s senior unsecured rating to B3 from B2, with a stable outlook. The rating action follows Consensus Cloud Solutions’ closing of a $225 million senior secured credit facility, which includes a $75 million revolving credit facility expiring July 2028 and a $150 million delayed draw term loan due July 2028. The cloud fax services provider plans to fully draw down on the delayed draw term loan to repurchase a portion of its unsecured notes due 2026 when they become callable at par on October 15, 2025. The company is expected to use cash on hand and/or revolver drawings to repay the remaining balance of these notes. Moody’s explained that the downgrade of the senior unsecured instruments reflects the increased mix of senior secured debt in the capital structure and the expected reduction of loss absorption when the unsecured notes are repaid. The affirmation of the B2 CFR is based on expectations that Consensus’s revenue trends will improve over the next 12 months despite continued declines in the small office home office (SoHo) segment. This decline is partially offset by continued revenue growth in the Corporate segment. Moody’s noted that Consensus’s B2 CFR is constrained by moderately high debt/EBITDA of 3.4x as of March 31, 2025, small scale relative to other healthcare software as a service companies, and concentration around its cloud fax offering. The rating is supported by good liquidity, consistent annual free cash flow generation, expected growth in the Corporate segment, and a prudent financial policy. The company has repaid $223 million of debt under its $300 million bond repurchase program as of May 7, 2025. Consensus maintains $53 million cash on hand and full availability under its new $75 million revolver. The stable outlook reflects Moody’s expectation that the company’s revenue trends will improve, debt/EBITDA will remain below 3.75x, and modest free cash flow relative to debt will be generated. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Moody’s affirms Consensus Cloud Solutions’ B2 rating, downgrades notes

Moody’s Ratings affirmed the B2 corporate family rating of Consensus Cloud Solutions, Inc., while downgrading its senior unsecured rating to B3 from B2 with a stable outlook. This follows the company’s closing of a $225 million senior secured credit facility, including a $75 million revolving credit facility expiring July 2028 and a $150 million delayed draw term loan due July 2028. The company plans to use the term loan to repurchase unsecured notes due 2026 when they become callable in October 2025. The downgrade reflects increased senior secured debt in the capital structure and reduced loss absorption capacity. Moody’s expects revenue trends to improve despite continued declines in the SoHo segment, supported by growth in the Corporate segment and prudent financial policies.