Fitch revises Idemia outlook to positive

Fitch Ratings said it revised Idemia Group SAS' outlook to positive from stable and affirmed the group's senior secured B+ ratings on its loans and B issuer rating.

“The revision of the outlook reflects Fitch's expectation of sustained profitability, albeit reduced from 2024 onwards, such that Idemia's EBITDA gross leverage will remain below 4.5x in 2023-2024. If accompanied by sustained positive free cash flow (FCF) and adequate interest cover, this is commensurate with a higher rating,” the agency said in a press release.

Fitch noted Idemia scored a record year in 2022 with year-on-year revenue growth at constant currency of 13.8%, with 19.8% and 7.7%, respectively in its enterprise and government businesses. Additionally, the company’s Fitch-defined EBITDA margin widened to 18% in 2022 from about 14% in 2021, which is high versus historical levels.

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