S&P boosts Shape Technologies

S&P said it boosted all its ratings for Shape Technologies Group Inc. by a notch, including its senior secured rating to B- from CCC+.

“Despite the difficult operating conditions, we believe the tailwinds that supported Shape's revenue and EBITDA expansion in 2021 will continue over the next 12 months, enabling it to maintain S&P Global Ratings-adjusted leverage of between 6x and 7x.The company's end-market demand has continued to improve, with its increasing systems and aftermarket activity leading to a solid expansion in its revenue in 2021 following the pandemic-induced disruptions it experienced the previous year,” the agency said in a press release.

S&P said it sees Shape maintaining an S&P Global Ratings-adjusted EBITDA margin in the mid-teens percent.

The outlook is stable.

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