Moody's upgrades syncreon

Moody's Investors Service said it upgraded syncreon Group BV's corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD, senior secured first-lien first out term loan to Ba3 from B1 and the senior secured first-lien second-out term loan to B3 from Caa1. The outlook was changed to stable from negative.

“The rating action reflects Moody's expectation for continued, solid free cash flow generation and improving interest coverage as the focus on right-sizing the cost structure and eliminating unprofitable contracts is translating into good operating momentum. Results have also benefited from the step-change in technology spending for remote work and school arrangements as well as the recovery, though more recently uneven, in global automotive production,” the agency said in a press release.

The new outlook reflects expectations for mid-single digit organic revenue growth “Margins should be sustained near current levels (EBITDA margin in the low-20% range), enabling free cash flow to comfortably exceed $50 million,” Moody’s said.

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