S&P moves AG Parent view to positive

S&P said it revised AG Parent Holdings LLC’s outlook to positive from stable. AG is the parent of ArisGlobal Holdings LLC.

“Specifically, we expect ArisGlobal to increase its revenue by 25% and maintain stable EBITDA margins in 2021, which will enable it to reduce its adjusted debt leverage to about 6.5x (from 8.5x in 2020) and maintain its ratio of free operating cash flow (FOCF) to debt to above 10%, which we consider strong for the current rating,” the agency said in a press release.

The outlook reflects the stability and robust profitability of the business and the potential for the rating to be raised in the next 12 months if ArisGlobal achieves and maintains adjusted leverage of less than 7x while sustaining annual FOCF generation, excluding gains from net working capital inflows, of more than 3% of its debt, S&P said.

The agency also affirmed AG Parent’s B- issuer credit rating, the B- issue-level rating on the company's first-lien term loan and revolver and the CCC issue-level rating on its second-lien term loan.

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