Altium Packaging LLC

The stable outlook on Altium reflects our assessment that steady demand volumes combined with ongoing productivity improvement will likely support debt leverage below 7x over the next 12 months. We could lower our ratings if the company's debt leverage increases above 7x on a sustained basis. A significant decline in operating performance, acquisitions, or shareholder rewards could result in debt leverage weakening to this level. We could upgrade the company if its debt leverage improves to below 5x on a sustained basis and it commits to financial policies that support the improved credit metrics. Real U.S. GDP growth of 6.5% in 2021 and 3.1% in 2022; Low- to mid-single digit volume growth in 2021 and 2022; Adjusted EBITDA margins in

...The company's performance was strong in 2020 and we expect another strong year in 2021. Altium Packaging LLC's growth initiatives, acquisition contributions, and tailwinds from the pandemic helped drive 9.5% sales growth this past year. We expect these trends to persist in 2021 spurring low- to mid-single digit organic volume growth. The company's leverage is slightly elevated, but we consider it manageable pro forma for the shareholder distribution. We estimated debt leverage is about 6.5x pro forma for the company's $200 million debt-funded shareholder distribution (February 2021). While the company's credit metrics are elevated, we expect measures to improve over the next 12 months supported by ongoing organic volume growth and modest debt reduction....

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