Research Update: Angi Inc. Ratings Affirmed; Group Strength Offsets Weaker EBITDA Margins, Unsec. Recovery Rating Revised To '3'

Denver-based home services digital marketplace company Angi Inc. reported weaker EBITDA margins than we expected in 2020 and the first quarter of 2021 and we now expect its margins to remain weak over the next 24 months as it continues to invest in expanding its Angi Homeservices business. We affirmed our 'BB-' issuer credit rating on Angi Inc. and our 'BB-' issue-level rating on its debt to reflect our expectation of the potential support from its parent, IAC/InterActiveCorp., in a stress scenario. However, we lowered our stand-alone credit profile on the company to 'b+' from 'bb-' to indicate our expectation that its leverage will remain elevated at more than 6x over the next 12 months. At the same time, we

...- Denver-based home services digital marketplace company Angi Inc. reported weaker EBITDA margins than we expected in 2020 and the first quarter of 2021 and we now expect its margins to remain weak over the next 24 months as it continues to invest in expanding its Angi Homeservices business. - We affirmed our '##-' issuer credit rating on Angi Inc. and our '##-' issue-level rating on its debt to reflect our expectation of the potential support from its parent, IAC/InterActiveCorp., in a stress scenario. However, we lowered our stand-alone credit profile on the company to 'b+' from '##-' to indicate our expectation that its leverage will remain elevated at more than 6x over the next 12 months. - At the same time, we revised our recovery rating on Angi's $500 million unsecured notes due 2028 to '3' from '4' following the company's repayment of $213 million of the principal on its outstanding senior secured term loan because the reduction in the amount of secured debt in its capital structure...

Research Update