Announcement of Periodic Review: Moody’s announces completion of a periodic review of ratings of Computershare Ltd
Global Credit Research – 26 Jan 2021
Sydney, January 26, 2021 — Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of Computershare Ltd and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 19 January 2021 in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.
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This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
Computershare Ltd’s Baa2 rating reflects its market leading position in its core business of share registry, transfers and employee share plans, good diversification across customers, business lines and geography and a high proportion of recurring revenue. The rating is also supported by Computershare’s relatively conservative financial policy with a publicly articulated leverage target range.
Computershare’s rating is constrained by its exposure to uncontrollable macro factors, particularly low interest rates. The rating is also constrained by the company’s acquisitive track record, which can result in temporary increases in financial leverage. Additionally, distributed ledger technology may introduce disruption risk in the future.
This document summarizes Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Business and Consumer Service Industry published in October 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Ian Chitterer VP - Senior Credit Officer Corporate Finance Group Moody's Investors Service Pty. Ltd. Level 10 1 O'Connell Street Sydney NSW 2000 Australia JOURNALISTS: 61 2 9270 8141 Client Service: 852 3551 3077 Patrick Winsbury Associate Managing Director Corporate Finance Group JOURNALISTS: 61 2 9270 8141 Client Service: 852 3551 3077 Releasing Office: Moody's Investors Service Pty. Ltd. Level 10 1 O'Connell Street Sydney NSW 2000 Australia JOURNALISTS: 61 2 9270 8141 Client Service: 852 3551 3077
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