...An examination of U.S. leveraged buyouts rated by Moody s Corporate Finance Group from #### to the present a period of unprecedented deal- making reveals that the nation s most prominent private-equity sponsors are far from a monolithic group when it comes to post-LBO financial management. Significant differences in financial st rategy among the private-equity firms we analyzed can be particularly important for debtholders in these transactions. By tracking a given private-equity firm s propensity for large dividends or acquisitions, for example, investors wi ll be in a better position to gauge the potential for rating changes. Equally important, insights into how top sponsors carry out their financial strategies can help shape initial rating decisions. During the past several years, as Moody s became more familiar with individual private-equity firms financial management, rating committees we re in a better position to assess the potential for additional dividends or...

Report Type: Special Comment
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