Moody's Investors Service has affirmed a suite of credit ratings for ZoomInfo Technologies Inc. while moving the outlook to negative from stable. The agency left the company's corporate family rating at Ba3 and maintained the Ba3-PD probability of default rating. Separately, Moody's affirmed ZoomInfo LLC's $276 million revolving credit facility and $578 million term loan at Ba1, and left ZoomInfo Technologies LLC's $650 million 3.875% senior unsecured notes at B1.
The rating actions reflect Moody's expectation that ZoomInfo will sustain leverage and cash generation metrics over the coming year. Specifically, Moody's anticipates that debt-to-EBITDA will remain below 4.5x and that free cash flow-to-debt will exceed 20% over the next 12 to 18 months. The agency also cited ZoomInfo's subscription-heavy revenue base and solid customer retention within its enterprise segment as credit positives that support the Ba3 rating.
Despite those strengths, Moody's revised the outlook to negative because of concerns about the pace of revenue recovery. The agency highlighted potential pricing pressure and client retention challenges arising from competitive dynamics as factors that could postpone a return to revenue growth. Moody's also pointed to disruption in enterprise IT budgets driven by new technologies, including agentic artificial intelligence solutions, as persistent headwinds to the company's strategic repositioning.
On May 11, ZoomInfo said it would accelerate its plan to reposition its non-enterprise business, taking on cash restructuring charges in the range of $45 million to $60 million. At that time the company also lowered its revenue and earnings guidance for fiscal 2026. Those actions were noted by Moody's in assessing both the company's near-term operating outlook and its financial profile.
Moody's preserved ZoomInfo's SGL-1 speculative grade liquidity assessment. The agency pointed to projected strong free cash flow as well as the company's liquidity position as of March 31, 2026 - $175 million of cash and marketable securities and $176 million of availability under the revolving credit facility - as supporting factors for the liquidity designation.
The combination of affirmed ratings and a negative outlook signals that while Moody's views ZoomInfo's market position and cash-generating capacity as credit strengths, it also sees meaningful uncertainty around revenue trajectory. The outlook change underscores the influence of competitive pricing dynamics, client retention trends, and enterprise IT spending shifts on the company's near-term credit profile.
Summary
Moody's affirmed ZoomInfo's Ba3 corporate family rating and related debt ratings but changed the outlook to negative. The affirmation leans on expected leverage below 4.5x, free cash flow-to-debt above 20% in the next 12-18 months, and the company's recurring subscription revenue and enterprise customer retention. The outlook was downgraded to negative due to concerns that pricing pressure, client retention issues, and disruptions to enterprise IT budgets from emerging technologies could delay revenue growth. ZoomInfo has accelerated a non-enterprise business repositioning and will incur $45 million to $60 million in cash restructuring costs, and it has reduced 2026 revenue and earnings guidance. Moody's kept the SGL-1 liquidity rating, citing cash balances of $175 million and $176 million of revolver availability as of March 31, 2026.