Brown & Brown (BRO) has disclosed a new risk, in the Debt & Financing category.
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Brown & Brown faces potential financial challenges due to the risk of a downgrade in its corporate credit rating or the ratings of its outstanding debt. Such a downgrade could lead to higher borrowing costs and reduced financial flexibility, impacting the trading value of its securities and potentially affecting its competitive position. Furthermore, in the event of a ratings decline combined with a change of control, the company might be obligated to repurchase its Senior Notes, potentially leading to a default if sufficient funds are unavailable. These factors underscore the importance of maintaining stable credit ratings to ensure continued access to favorable financing and market conditions.
Overall, Wall Street has a Moderate Buy consensus rating on BRO stock based on 5 Buys, 1 Sell and 4 Holds.
To learn more about Brown & Brown’s risk factors, click here.
