Perenti Global Ltd.

The stable outlook reflects our expectation that Perenti will continue to grow its order book across its key geographies over the next 12-24 months under the Ausdrill, Barminco, and African Underground Mining Services (AUMS) brands. During benign industry conditions, Perenti was able to generate an adjusted debt-to-EBITDA ratio of about 2.0x and funds from operations (FFO)-to-debt ratio of about 45%. During an industry downturn, the rating could tolerate the debt-to-EBITDA ratio weakening toward 3.0x and an FFO-to-debt ratio of about 30%. We believe the group has some financial flexibility to manage its credit metrics. Downward rating pressure could arise if Perenti's key credit metrics weaken, such that the adjusted debt-to-EBITDA ratio sustains above 3.0x and the adjusted FFO-to-debt ratio stays

...Perenti Global Ltd.'s (Perenti) smaller scale globally, material exposure to Africa, and indirect exposure to volatile commodity prices from contract mining revenues will continue to constrain the ratings. Offsetting these weaknesses are the company's leadership position in a niche market, long track record and expertise of operating in Africa, conservative financial management, and modestly diversified service offerings that provides some resilience to an industry downturn. In our view, Perenti's conservative financial management should support the ratings. The company has historically raised equity to support growth capital expenditure and repay debt. Perenti's conservative financial policies have provided it with greater resilience relative to peers during past commodity cycles....

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