(Finance) – S&P Global Ratings has revised theoutlook Of TeamSystem to “positive” from “stable” thanks to good operating performance and deleveraging; the “B-” rating was affirmed.
The Italian software provider is refinancing part of its capital structure through aissue of senior guaranteed notes for €700 million and the rating agency expects the company’s debt to EBITDA to increase to 7.3x in 2024, from 6.6x in 2023 (pro-forma 12-month contribution from companies acquired during 2023), while free operating cash flow (FOCF) to debt will remain below 5% in 2024.
At the same time, it provides that the leverage will resume its downward trend following the refinancing transaction and that FOCF on debt will gradually improve to above 5% starting in 2025. These forecasts are supported by the company’s track record of sustaining organic revenue growth of over 10%, its solid adjusted EBITDA margin of approximately 36% and its high share of recurring revenues.
(Photo: © Veerasak Piyawatanakul)