Avison Young (Canada) Inc.

The stable outlook over the next 12 months reflects S&P Global Ratings' expectation of no near-term debt maturities, EBITDA cash interest coverage of 1.2x-1.5x, sufficient cushion on the leverage covenant under the revolving credit agreement, and adequate liquidity. At the same time, our outlook considers potential revenue headwinds to leasing and capital market sales activity due to pandemic-related pressure. We could lower the rating over the next 12 months, if the EBITDA cash interest coverage ratio declines below 1.2x or liquidity deteriorates. An upgrade is unlikely over the next 12 months. S&P Global Economics forecasts U.S. GDP will drop by 4.0% in 2020, and grow by 3.9% and 2.4% in 2021 and 2022, respectively. The recovery remains fragile--in particular because

...Relatively small player in a highly competitive commercial real estate (CRE) services industry with an acquisitive growth strategy. Avison Young (Canada) Inc.'s 2019 acquisition of GVA Grimley Holdings Ltd. (GVA) helped to diversify the company's revenue and geographic outreach. However, Avison Young lacks the scale of global peers such as CBRE Services Inc. (CBRE), Jones Lang LaSalle Inc. (JLL), and Cushman & Wakefield (C&W). We expect EBITDA to remain resilient despite the revenue headwinds posed by the pandemic. Although fee revenue will be pressured due to a decline in leasing and capital markets activity, we expect the company to manage expenses prudently, mitigating any material impact on EBITDA. Outlook The stable outlook over the next 12 months reflects S&P Global Ratings' expectation of no near-term debt maturities, EBITDA cash interest coverage of 1.2x-1.5x, sufficient cushion on the leverage covenant under the revolving credit agreement, and adequate liquidity. At the same time,...

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