S&P changes Cologix outlook to stable

S&P said it revised the outlook for Cologix Holdings Inc. to stable from negative and affirmed the B- ratings on the company and its first-lien credit facilities. The 3 recovery rating is unchanged.

“We do not expect the Covid-19 pandemic to have a significant adverse impact on the company’s operations over the coming 12 months. We expect the company to report mid-single-digit revenue growth in 2020, improving to near 10% in 2021, as edging out of data closer to the end consumer continues to drive demand,” S&P said in a press release.

However, the agency said it expects leverage to remain elevated. Adjusted leverage for the company fell to the mid-7x area so far this year. The stable outlook mirrors S&P’s belief that leverage will stay below the mid-7x area.

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