Research Update: CoStar Group Inc. Outlook Revised To Positive From Stable On Continued Conservative Financial Policy; Ratings Affirmed

Washington D.C.-based CoStar Group Inc., a leading provider of information, analytics, and marketing solutions to the U.S. commercial real estate (CRE) industry, continues to grow while maintaining a conservative financial policy. In our view, the company can maintain an exceptional level of liquidity even considering a robust acquisition pipeline. We revised the outlook on CoStar to positive from stable and affirmed our 'BB+' issuer credit rating on the company. The issue-level ratings are unchanged, including our 'BB+' issue-level rating and '3' recovery rating on CoStar's $1 billion 2.8% senior unsecured notes due 2025. The positive outlook reflects our view that during the next 12 to 24 months CoStar will continue to benefit from its leading position in its core U.S.

...- Washington D.C.-based CoStar Group Inc., a leading provider of information, analytics, and marketing solutions to the U.S. commercial real estate (CRE) industry, continues to grow while maintaining a conservative financial policy. - In our view, the company can maintain an exceptional level of liquidity even considering a robust acquisition pipeline. - We revised the outlook on CoStar to positive from stable and affirmed our '##+' issuer credit rating on the company. - The issue-level ratings are unchanged, including our '##+' issue-level rating and '3' recovery rating on CoStar's $1 billion 2.8% senior unsecured notes due 2025. - The positive outlook reflects our view that during the next 12 to 24 months CoStar will continue to benefit from its leading position in its core U.S. market, and generate adjusted EBITDA margins above 30%, while sustaining adjusted debt to EBITDA well below 2x, incorporating at least $500 million in cash....

Research Update