...September 17, 2024 Adverse antitrust litigation outcomes could result in large cash outflows longer term but are unlikely to cause an issuer credit rating downgrade. RealPage faces litigation involving its revenue management software (less than 10% of revenues) and allegations of related anticompetitive collusion by apartment providers. We believe this litigation may affect the company's credit metrics unpredictably. Negative outcomes could ultimately include a large regulatory fine or settlement, reduced demand across the company's offerings, increased compliance costs, or additional copycat lawsuits. However, we believe scenarios that could result in a rating downgrade are unlikely particularly in the near-term because we expect the litigation will not be resolved for several years. RealPage has reduced total net leverage as defined in the credit agreement by about 2x since the 2021 leveraged buyout through strong operating performance, and therefore it has ample incremental debt issuance...
