S&P lifts On Assignment view to stable

S&P said it revised the outlook on On Assignment Inc. to stable from negative and affirmed the ratings on the company, including the BB corporate credit rating.

The outlook revision reflects an expectation that the company's adjusted debt leverage will decrease to the mid- to high-2x range over the next 12 months from 3x as of March 31 due to EBITDA growth and debt repayment, S&P said.

The company has made solid progress in reducing its debt leverage as it repaid about $134 million of debt since its debt-financed acquisition of Creative Circle in June 2015, the agency said.

On Assignment's EBITDA growth over the last year was driven by the Creative Circle acquisition and its organic revenue growth, which outperformed its industry and expectations, S&P said.

The company's revenue growth reflects improved sales productivity and headcount, which help the company capture new business from continued strong end-market demand and favorable secular trends for temporary staffing, the agency added.

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