Mirion Technologies Inc.

The stable outlook on Mirion reflects our expectation that the company's revenue growth and ongoing operational improvements will allow it to support margins in the low- to mid-20% range while maintaining adjusted debt to EBITDA of less than 6.5x over the next 12-18 months. Overall, we continue to believe the company's presence across the nuclear power plant (NPP) life cycle, its large installed base, and the contributions from its non-nuclear power businesses will allow it to support this level of leverage. We could lower our rating on Mirion if its leverage remains above 6.5x on a sustained basis. This could occur if the company's operating performance deteriorates due to an underperformance in its Asian markets because of unfavorable regulatory changes,

...Mirion is highly exposed to the global nuclear power industry. Mirion Technologies Inc. competes in the fragmented global radiation detection market against smaller regional competitors and the strategic business units of larger, well-capitalized companies. Despite the significant regulatory barriers to entry and high switching costs for its clients--given the extremely high cost of failure--the company's dependence on favorable global regulatory and environmental policies and the long life cycle of nuclear power plants can create some volatility in its performance. In addition, we believe Mirion's product diversity is limited because the majority of its products are for detection and monitoring systems for nuclear and radioactive activity. Mirion could potentially increase its leverage due to its equity sponsor ownership. We believe Mirion's good organic growth and margin improvement, due to its global footprint and large installed nuclear base, provide it with increased long-term revenue...

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