Research Update: TriNet Group Inc. Outlook Revised To Positive On Better-Than-Expected Operating Performance; Ratings Affirmed

Dublin, Calif.-based human resources (HR) outsourcing solutions provider TriNet Group Inc. reported a solid operating performance through the first-half 2021 and raised full-year 2021 expectations as strong hiring trends continue to support earnings and offset rising health insurance costs. In our updated forecast, we now expect TriNet's adjusted gross leverage to be below 1.5x in 2021. We revised our outlook on TriNet to positive from stable and affirmed our 'BB' issuer credit rating. At the same time, we affirmed our 'BBB-' issue-level rating, with a '1' recovery rating, on the company's secured revolving credit facility, and our 'BB' issue-level rating, with a '3' recovery rating on the senior unsecured notes. The positive outlook reflects the possibility of an upgrade over

...- Dublin, Calif.-based human resources (HR) outsourcing solutions provider TriNet Group Inc. reported a solid operating performance through the first-half 2021 and raised full-year 2021 expectations as strong hiring trends continue to support earnings and offset rising health insurance costs. - In our updated forecast, we now expect TriNet's adjusted gross leverage to be below 1.5x in 2021. - We revised our outlook on TriNet to positive from stable and affirmed our '##' issuer credit rating. - At the same time, we affirmed our '###-' issue-level rating, with a '1' recovery rating, on the company's secured revolving credit facility, and our '##' issue-level rating, with a '3' recovery rating on the senior unsecured notes. - The positive outlook reflects the possibility of an upgrade over the next 12 months if we become more certain that favorable business conditions and a prudent financial policy will result in gross adjusted leverage sustained below 1.5x....

Research Update