Information Services Group (III) has disclosed a new risk, in the Debt & Financing category.
Information Services Group faces a significant business risk due to its exposure to interest rate fluctuations. With its credit facility interest pegged to variable rates such as the Base Rate or Term SOFR, plus additional margins that adjust quarterly, any increase in these benchmark rates could inflate the company’s debt service obligations. Despite a constant borrowing amount, higher interest payments may strain Information Services Group’s cash flows, potentially impacting its capacity to meet the financial covenants stipulated by its credit facility terms. This interest rate risk underscores the vulnerability of the company’s financial health to market rate volatilities.
Overall, Wall Street has a Moderate Buy consensus rating on III stock based on 1 Buy.
To learn more about Information Services Group’s risk factors, click here.
