IBC Capital Ltd.

The stable outlook reflects our expectation that IBC's debt-to-EBITDA ratio could stay above 5.5x over the next 12 months, despite a modest increase in EBITDA. We believe a downgrade is unlikely over the next 12 months. However, we may lower the rating on IBC if the company's EBITDA interest coverage falls sustainably below 1.75x. This would require EBITDA to decline 30%-50% below our base case, causing the company's liquidity profile to deteriorate. We may upgrade IBC if we see credible prospects for the company's debt-to-EBITDA ratio to remain below 5.5x over the next 12 months. This would require steady top-line growth of 5%-10% and EBITDA margin exceeding 50% sustainably amid reduced capital spending, along with a commitment by KKR, a

...IBC Capital Ltd.'s growing geographical diversification should cushion the negative impact of geopolitical or trade tensions. We expect IBC's geographical footprint to expand, given its plans to penetrate more markets in Northeast Asia and America. This would increase the company's resilience to economic downturns and geopolitical events. For instance, when the U.S. imposed tariffs on apple juice concentrate originating from China, IBC was able to quickly reposition 70,000 containers from Asia to capture demand in Ukraine and Poland. IBC's business is fairly spread out across different regions, with no one region contributing to more than 30% of revenue. The company currently has 18 subsidiaries across six continents and operations in 80 countries....

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