Bulletin: Potential Spin-Off Of Angi Inc. By IAC Could Remove Parent Support, Offsetting Improved Credit Metrics

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Nov. 14, 2024--S&P Global Ratings said that IAC Inc. ?s (BB-/Stable) possible spin-off of Angi Inc. (B/Positive) would be relatively credit neutral to Angi, as the removal of potential parent support would be offset by Angi?s improved stand-alone performance. IAC recently announced that it is considering spinning off of its ownership stake in Angi to its shareholders. Our ?B? issuer credit rating on Angi includes one notch of uplift from its higher-rated parent, reflecting our view that IAC would provide a moderate level of credit support to Angi in a stress scenario. Angi?s stand-alone credit profile has shown continued improvement due to an effort to refocus its

...November 14, 2024 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Nov. 14, 2024--S&P Global Ratings said that IAC Inc.'s (##- /Stable) possible spin-off of Angi Inc. (B/Positive) would be relatively credit neutral to Angi, as the removal of potential parent support would be offset by Angi's improved stand-alone performance. IAC recently announced that it is considering spinning off of its ownership stake in Angi to its shareholders. Our `B' issuer credit rating on Angi includes one notch of uplift from its higher- rated parent, reflecting our view that IAC would provide a moderate level of credit support to Angi in a stress scenario. Angi's stand-alone credit profile has shown continued improvement due to an effort to refocus its business on attracting and retaining higher-margin service professionals while focusing on tighter expense management. As a result, we expect the company to end 2024 with S&P Global Ratings-adjusted gross leverage of about 5.4x compared...

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