S&P moves Intermedia view to stable

S&P said it changed its outlook for Intermedia Holdings Inc. to negative from stable and affirmed the B- ratings on the issuer and its first-lien term and revolver.

“Rising interest rates and the company's organic growth investments will likely lead it to generate greater FOCF deficits over the next 12 months than we previously forecast and cause its leverage to remain elevated. Given that its EBITDA margins have decreased to less than 10% due to its investments in its sales, marketing, and product development, we expect Intermedia's debt to EBITDA will remain elevated at about 10x as of the end of 2022,” the agency said in a press release.

S&P estimates Intermedia will post negative FOCF of $15 million to $20 million over the next 12 months.

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