Buccaneer Intermediate Holdco Ltd.

The stable outlook reflects our expectation that leverage will remain high (above 5.0x) despite the rapid expansion of revenue and EBITDA. We also expect that the company will continue to push for adoption of eCOA over paper-based collection in studies over the next 12 months. We could consider lowering the rating if cash-flow generation becomes persistently negative or if cash interest coverage declines below 1.5x. This could occur if operational issues cause revenue growth to stall or if interest rates rise by more than 200 basis points after adjusting for hedging and swaps from the company. We could consider an upgrade if Buccaneer can continue to push adoption of eCOA over paper-based collection studies and is able to steadily improve

...Financial sponsor ownership and aggressive financial policy will keep leverage high. We expect adjusted debt leverage will remain above 7x over the coming year, largely as a result of the financial policies of the private equity owner. We expect the financial sponsor will direct free cash flow for acquisitions or shareholder returns. The company has a small scale and operates in a niche market with moderate entry barriers.The company operates in a niche market (less than $1 billion) with only moderate barriers of entry. The company competes with more diverse players. Clinical trial delays and cancellations are also key risks given the company's limited size and challenges in re-allocating resources. Nevertheless, company is the second-largest player in the growing eCOA market. Buccaneer is the second-largest player in the growing eCOA market, which we expect will continue to grow at a double-digit percent rate for the next few years as electronic clinical recording replaces the existing...

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