Equifax outlook lowered to negative by Standard and Poor's
Ratings agency Standard and Poor's announced Monday that in the wake of the Equifax Inc. breach which put 143 million Americans' data at risk, it is revising its outlook on the company to negative from stable. The ratings agency did not alter its "BBB+" rating on Equifax's corporate debt. "The negative outlook reflects substantial uncertainty surrounding the eventual impact of this incident," Standard and Poor's said in a news release. While Equifax's core business is strong and will be able to ride out the attack, Standard and Poor's said that "substantial litigation and potential finds" coupled with an unknown cost to repair the damage will likely mean debt leverage would remain "above 2x over the next two years." On Friday, Moody's Investors Service said that the criminal hack will hurt the company's earnings growth for the next three to four quarters, as well as its reputation. Moody's did not change its rating on Equifax debt. Investors continued the selloff of Equifax stock Monday, cutting another 8.2% off its price to $113.12. Equifax stock has declined 4.3% this year, with the S&P 500 index rising 11.1%.
