Aggressive M&A activity and continued business investments have weakened Zywave's credit profile in recent quarters, leading to negative free operating cash flow (FOCF) through the first half of fiscal 2022. We expect the company's weak cash flow and EBITDA margins to persist through the forecasted macroeconomic downturn, potentially resulting in continued revolving credit facility draws and reduced liquidity reserves. As a result, we revised our outlook on Zywave to negative from stable and affirmed our 'B-' issuer credit rating on the company. The negative outlook reflects our view that the challenging near-term operating environment--coupled with rising interest rates--may cause the company's already weakened free cash flow and EBITDA margins to deteriorate further. The negative outlook reflects our view that although
