S&P turns Safe Fleet view to positive

S&P said it changed its outlook for Safe Fleet Holdings LLC to positive from stable and affirmed the B- ratings on the issuer and its first-lien credit facilities. The agency also affirmed the CCC rating on the second-lien term loan. The 3 recovery rating (rounded estimate: 50%) on the first-lien debt and 6 rating (rounded estimate: 0%) on the second-lien debt are unchanged.

“We expect continued healthy demand in Safe Fleet's end markets over the next 12 months, primarily supported by secular trends, ongoing replacement cycles, and improving vehicle deliveries. In the passenger, law, transportation, and waste end market, we expect moderate organic growth with particular strength in video monitoring equipment in law enforcement vehicles and municipal buses,” the agency said in a press release.

S&P noted it expects the company to generate positive free cash flow and for leverage to decline to the low- to mid-6x area over the next 12 months.

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