Ratings agency Moody’s has revised its outlook for private equity-owned DTZ to “stable”.
The agent, which was acquired by a TPG-led consortium last year, had its outlook downgraded to “negative” earlier this year following the announcement of its proposed acquisition of Cushman & Wakefield.
Moody’s had warned that the deal, which followed on quickly from the acquisition of US agent Cassidy Turley, entailed significant integration hurdles and risked adding substantial debt.
However, it has now said that it expects DTZ will “successfully integrate the Cassidy Turley and Cushman & Wakefield acquisitions, with sustained or gradual improvement in market share and margin expansion across its businesses globally”.
It added: “The outlook also anticipates, based on management guidance, that leverage will decline over the course of 2016 and the company will not make additional large scale acquisitions until its operations are stabilised.”
