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Rating Action:

Moody's affirms Equifax's Baa1 long-term rating; stable outlook

Global Credit Research - 17 Nov 2015

New York, November 17, 2015 -- Moody's Investors Service affirmed Equifax Inc.'s ("Equifax") Baa1 senior unsecured rating and P-2 commercial paper rating and assigned Baa1 ratings to Equifax's new senior credit facilities. The rating outlook is stable. The rating action follows Equifax's plans to raise $2.5 billion of new credit facilities in connection with the previously announced acquisition of Veda Group Limited ("Veda") for approximately $1.9 billion, including net debt at Veda. The acquisition is subject to shareholder and regulatory approvals and expected to close in the first quarter of 2016.

RATINGS RATIONALE

Moody's estimates Equifax's total debt to EBITDA will increase to approximately 3.4x (Moody's adjusted) at the close of the acquisition. The affirmation of the ratings reflects Moody's view that management will commit a majority of its free cash flow to reduce debt after the acquisition. Moody's expects Equifax's strong EBITDA growth and debt repayment will drive leverage to below 2.5x 12 to 18 months after the acquisition. Pro forma for the acquisition, Moody's expects Equifax to generate free cash flow in excess of $450 million in 2016. Veda has a strong leadership position in the Australia and New Zealand consumer and credit bureau markets with good growth prospects. The acquisition will modestly enhance Equifax's geographic revenue diversification.

The Baa1 senior unsecured rating reflects Equifax's market position as one of the three principal consumer credit reporting agencies in the US with good market presence in several international markets. Its credit profile benefits from the high barriers to entry in core markets because the agencies maintain comprehensive databases of consumer information that is sourced from thousands of data providers and is hard to replicate. The agencies' technology and data are integrated into customer systems and processes. Pro forma for the Veda acquisition, Moody's expects Equifax's revenues and adjusted EBITDA to grow in the high single digit percentages over the next 12 to 18 months driven by greater penetration of Workforce Solutions services and growth in consumer credit information solutions in the US and analytic products. The Baa1 rating is supported by management's commitment to maintain total debt to EBITDA between 1.75x to 2.25x over the intermediate term. The rating is constrained by Equifax's moderate operating scale and its revenue exposure to macroeconomic cycles.

The stable rating outlook incorporates Moody's expectations that Equifax will generate strong earnings growth and debt balances will decline after the acquisition of Veda.

Moody's has taken the following rating actions:

Assignments:

..Issuer: Equifax Inc.

....Senior Unsecured Bank Credit Facility, Assigned Baa1

Affirmations:

..Issuer: Equifax Inc.

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa1

....Multiple Seniority Shelf, Affirmed (P)Baa1

....Senior Unsecured Commercial Paper, Affirmed P-2

Outlook Actions:

..Issuer: Equifax Inc.

....Outlook, Remains Stable

Equifax organizes and maintains data on more than 600 million consumers and 81 million businesses worldwide and is a leading provider of consumer, commercial and workforce information solutions.

The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Raj Joshi
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Lenny J. Ajzenman
Associate Managing Director
Corporate Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's affirms Equifax's Baa1 long-term rating; stable outlook
No Related Data.
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