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Investing.com -- Moody’s Ratings has downgraded ZipRecruiter, Inc.’s Corporate Family Rating to B2 from B1, reflecting ongoing challenges in the online job marketplace industry.
The California-based online job marketplace also saw its Probability of Default Rating lowered to B2-PD from B1-PD, while its Senior Unsecured Global Notes rating was downgraded to B3 from B2. The speculative grade liquidity rating moved to SGL-2 from SGL-1, with Moody’s assigning a stable outlook.
The rating action comes as a result of declining hiring volumes across the economy, which have persisted longer than expected. Moody’s anticipates tepid hiring conditions will continue over the next 12-18 months due to macroeconomic uncertainty.
ZipRecruiter’s credit metrics have deteriorated with leverage increasing significantly and cash flow declining. The company’s debt-to-EBITDA ratio has risen to over 10.0x for the 12-month period ending March 31, 2025, or approximately 7.5x when including stock-based compensation as an add-back.
Despite these challenges, ZipRecruiter maintains a robust liquidity profile with approximately $468 million in cash and cash equivalents as of March 30, 2025. The company’s $290 million revolver, due April 2026, had $287 million of available capacity as of June 30, 2025.
Moody’s noted that ZipRecruiter benefits from a strong market position as a leading provider of online recruiting services in the US, with its well-known brand and extensive client relationships creating a network effect that attracts both recruiters and job seekers.
The stable outlook reflects Moody’s expectation that ZipRecruiter will generate long-term revenue growth and maintain its market position in the online job market sector, supported by its strong liquidity position.
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