S&P lifts UST

S&P said it upgraded UST Holdings Ltd.’s issuer rating to BB- from B+ and its first-lien debt to BB from BB-. The recovery rating remains 2.

“We expect the company's digital revenue segment to return to growth in 2024 as demand pressures subside. UST's largest business line, digital solutions (78% of annual 2022 revenue) grew 16% in revenue during 2022 as clients across various industries invested in their digital transformation/IT modernization initiatives,” S&P said in a statement.

Additionally, “The company's net revenue retention ratio remains above 95% and the company's overall bookings saw growth during the first half of 2023–these factors support our view of longer-term growth tailwinds for the business,” the agency said.

The outlook is stable.

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