Research Update: Clinical Research Outsourcing Company Icon Upgraded To 'BBB-' On Operating Performance And Deleveraging; Outlook Stable

Since the successful acquisition of PRA Health Sciences in July 2021, Icon has shown strong operating performance with steady adjusted EBITDA margin growth estimated above 20%, and solid organic revenue growth of around 5% by year-end 2023 thanks to new business wins and realized cost synergies in line with expectations in a challenging macro environment. We anticipate leverage comfortably below 3x and funds from operations (FFO) to debt around 30% by year-end 2023, thanks to good operating performance and an estimated $900 million of debt prepayments during the year that underline a supportive financial policy with a maximum net leverage target of 2.5x. We therefore raised our long-term issuer credit rating on Icon PLC and our issue rating on the

...- Since the successful acquisition of PRA Health Sciences in July 2021, Icon has shown strong operating performance with steady adjusted EBITDA margin growth estimated above 20%, and solid organic revenue growth of around 5% by year-end 2023 thanks to new business wins and realized cost synergies in line with expectations in a challenging macro environment. - We anticipate leverage comfortably below 3x and funds from operations (FFO) to debt around 30% by year-end 2023, thanks to good operating performance and an estimated $900 million of debt prepayments during the year that underline a supportive financial policy with a maximum net leverage target of 2.5x. - We therefore raised our long-term issuer credit rating on Icon PLC and our issue rating on the group's senior secured term debt to '###-' from '##+'. - The stable outlook reflects our view that Icon will sustain leverage comfortably below 3x, while FFO to debt is expected to rise above 30% over the next 24 months, thanks to continued...

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