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Private equity

Moody’s threat on ‘aggressive’ buy-outs

By James Politi and Francesco Guerrera in New York

Published: January 14 2008 22:03 | Last updated: January 14 2008 22:03

Moody’s Investors Service will on Tuesday warn that it will adopt a tougher stance when rating companies owned by private equity groups that were more “aggressive” in the most recent deal­making cycle.

This could put companies owned by more aggressive buy-out firms at a relative disadvantage amid the economic downturn as they seek to strike new deals once the credit markets improve.

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