Research Update: Compass Group PLC Outlook Revised To Stable On Stronger-Than-Anticipated Performance; 'A/A-1' Ratings Affirmed

Compass Group PLC (Compass) delivered stronger-than-anticipated revenue and EBITDA growth during the first half of fiscal year (FY) ending Sept. 30, 2022, and we expect this to continue in the second half, supported by continued recovery and significant new customer wins. We forecast S&P Global Ratings-adjusted leverage at about 1.8x and funds from operations (FFO) to debt at 43%-45% in FY2022, despite some offsetting impact from the announced £500 million share buyback. We revised the outlook on Compass to stable from negative, and affirmed our 'A' long-term issuer credit rating and senior unsecured debt ratings on Compass, as well as our 'A-1' short-term issuer credit rating. The stable outlook indicates that significant volume growth, improved operating margins, and lower exceptional

...- Compass Group PLC (Compass) delivered stronger-than-anticipated revenue and EBITDA growth during the first half of fiscal year (FY) ending Sept. 30, 2022, and we expect this to continue in the second half, supported by continued recovery and significant new customer wins. - We forecast S&P Global Ratings-adjusted leverage at about 1.8x and funds from operations (FFO) to debt at 43%-45% in FY2022, despite some offsetting impact from the announced ú500 million share buyback. - We revised the outlook on Compass to stable from negative, and affirmed our 'A' long-term issuer credit rating and senior unsecured debt ratings on Compass, as well as our 'A-1' short-term issuer credit rating. - The stable outlook indicates that significant volume growth, improved operating margins, and lower exceptional costs will result in an approximately 80% increase in adjusted EBITDA for FY2022, supporting improvement in adjusted debt to EBITDA to comfortably below 2x, with FFO to debt exceeding 40%....

Research Update