Credit ratings agency Moody's this week revised its rating outlook for Equifax, downgrading it from stable to negative as a result of financial losses stemming from a 2017 data breach. The move marks the very first time Moody's has taken any kind of rating action as the result of financial fallout from a cyberattack.
A summary of the revised credit analysis explains that Equifax's business performance and reputation suffered from the breach, and further notes that the company's cash flow has decreased because of legal and IT expenditures stemming from the incident.
"The negative ratings outlook reflects our concerns that revenue may not grow and free cash flow could remain low for an extended period," the summary states. "The outlook could be revised to stable if we anticipate free cash flow to debt will return to around 10 percent and cybersecurity related investments and risks will abate."
Please register to continue.
Already registered? Log in.
Once you register, you'll receive:
The context and insight you need to stay abreast of the most important developments in cybersecurity. CISO and practitioner perspectives; strategy and tactics; solutions and innovation; policy and regulation.
Unlimited access to nearly 20 years of SC Media industry analysis and news-you-can-use.
SC Media’s essential morning briefing for cybersecurity professionals.
One-click access to our extensive program of virtual events, with convenient calendar reminders and ability to earn CISSP credits.