...March 16, 2023 - Despite organic growth outperformance, S&P pro forma adjusted leverage for insurance broker BRP Group Inc. has continued to trend very high for the rating and miss our expectations. - As a result, we lowered our issuer credit rating on BRP to 'B-' from 'B'. - The stable outlook reflects our view that leverage will improve in the second half of 2023, via organic growth and incremental margin expansion, though remain elevated above 7.0x through 2023. - At the same time we also lowered our ratings on BRP's first-lien credit facilities due 2027 to 'B-' from 'B' and maintained our '3' recovery ratings, which indicate our expectation for meaningful (50%-70%; rounded estimate 50%) recovery in the event of default. NEW YORK (S&P Global Ratings) March 16, 2023--S&P Global Ratings today took the rating actions listed above. BRP's rapid expansion has come at a cost with a strain to leverage above expectations. BRP has achieved robust topline growth since its IPO in 2019, due to its...
