Moody's has downgraded its Equifax rating from "stable" to "negative", following a 2017 security breach involving consumer data. It is the first time a cybersecurity issue has been a factor in a rating change, said Moody's Joe Mielenhausen. Equifax’s $about $250 millionm Q1 expense related to the breach, including settling class-action cases and potential federal and state fines, along with significant cybersecurity investments, contributed to the downgrade, the agency confirmed. Data-centred companies, such as financial and securities firms, hospitals, market services providers and utility companies are the most vulnerable to cyber risk impacting credit ratings, Moody’s added.
Moody's has downgraded its Equifax rating from "stable" to "negative", following a 2017 security breach involving consumer data. It is the first time a cybersecurity issue has been a factor in a rating change, said Moody's Joe Mielenhausen. Equifax’s $690m Q1 expense related to the breach, including settling class-action cases and potential federal and state fines, along with significant cybersecurity investments, contributed to the downgrade, the agency confirmed. Data-centred companies, such as financial and securities firms, hospitals, market services providers and utility companies are the most vulnerable to cyber risk impacting credit ratings, Moody’s added.