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. On the same token, cash
