Equifax outlook downgraded due to cyber attack – Equifax Inc. (NYSE:EFX)
Moody’s has slashed its rating outlook on Equifax (NYSE:EFX) from stable to negative, marking the first time cybersecurity issues have been cited as the reason for a downgrade.
The company took a $690M first-quarter charge for its massive 2017 breach of consumer data, representing an estimate for settling ongoing class action cases, as well as potential federal and state regulatory fines.
The decision is significant because investors increasingly look to ratings firms and insurance companies to adequately predict the longer-term fallout of some of the biggest breaches, a difficult task given the relative lack of historical data.
Gloss