Moody's alters Emerald X view to stable

Moody's Investors Service said it changed Emerald X, Inc.'s outlook to stable from negative.

The stable outlook reflects the company's operating performance recovery and expectations for continued deleveraging and positive free cash flow. In-person live events started to return in the second half of 2021, given at lower attendance levels, but ramped up in the first quarter of 2022, Moody’s noted.

“Moody's expects financial leverage (excluding event cancellation insurance proceeds) for 2022 to decline but remain high at around 10x as revenues return to normalized levels. Moody's expects financial leverage to decline below 5x in 2023 as a larger portion of events return to, or exceed, pre-pandemic levels, further supported by expectations that international travel restrictions ease over time,” the agency said in a press release.

Concurrently, Moody's affirmed Emerald X's B2 corporate family rating, its B2-PD probability of default rating and its B2 senior secured bank credit facility rating. The speculative grade liquidity rating remains unchanged at SGL-1.

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