Moody’s turns ICON outlook to positive

Moody’s Investors Service said it revised its outlook for ICON plc to positive from stable and affirmed its Ba1 ratings on the company and its senior secured bank credit facilities issued by ICON Luxembourg Sarl and PRA Health Sciences, Inc.

“The change in outlook to positive primarily reflects Moody's expectation of continued good operating performance and ICON delivering on its commitment to deleverage through debt repayments with most available free cash flow (FCF),” the agency said in a press release.

Moody’s said it expects ICON’s key credit metrics will improve towards an investment-grade level over the next 12-18 months, with a Moody's-adjusted gross leverage dropping below 3x and Moody's-adjusted FCF to debt improving above 20%, and continued excellent liquidity.

The agency said it expects ICON's top-line growth to reach around the mid-single digits in percentage terms over the next two years, and that its Moody's-adjusted EBITDA margin will trend to around 19% over the next 12-18 months.

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