Dublin, Calif.-based human resources (HR) outsourcing solutions provider TriNet Group Inc. has announced plans to maintain company-adjusted leverage of 1.5x-2x. It also announced plans to repurchase an incremental $1 billion in stock in fiscal 2023. We expect the company to fund its share repurchase program with a combination of debt and cash flow, which will weaken credit metrics. As a result, we lowered our issuer credit rating on TriNet to 'BB' from 'BB+'. The stable outlook reflects our expectation that TriNet will maintain S&P Global Ratings-adjusted leverage consistent with its new leverage target and commensurate with the 'BB' issuer credit rating. The stable outlook reflects our expectation TriNet will maintain leverage beneath 2.5x despite modest net service revenue and EBITDA
