Thomson Reuters outlook stable, was negative – S&P

NEW YORK, Aug 19 (BestGrowthStock) – Standard & Poor’s on Thursday
changed its outlook on news and data provider Thomson Reuters
Corp (TRI.TO: ) (TRI.N: ) to stable from negative, indicating a
downgrade is less likely over the medium term.

S&P also affirmed the company’s long-term corporate credit
rating at A-minus, the seventh-highest investment grade.

The outlook change reflects expectations of improved
operating performance, which should bring adjusted debt below
2.5 times earnings before interest, taxes, depreciation and
amortization in 2011, S&P said in a statement.

“In addition, the outlook revision reflects the successful
completion of a significant portion of the Reuters integration”
following its 2008 acquisition by Thomson, S&P said.

Ratings also reflect Thomson Reuters’ strong business risk
profile, substantial free cash flow, geographic diversity and
expanded product portfolio following the acquisition, the
rating agency said.

“The combination of the two companies created a global
leader in the business-to-business information markets, with
annual revenue of about $13 billion,” S&P said.

These strengths are partly offset by Thomson Reuters
credit protection measures, which are somewhat weak for the
ratings, and the sizable annual dividend, which reduces the
company’s free cash flow, the rating agency said.

Though there are some integration risks related to the
Reuters acquisition, Thomson Reuters is expected to effectively
complete the integration process by the end of 2011, S&P said.
(Reporting by Dena Aubin; Editing by James Dalgleish)

Thomson Reuters outlook stable, was negative – S&P