Research Update: Expleo Group Outlook Revised To Positive On Solid Performance Prospects; 'B-' Rating Affirmed

As a result of its solid performance in 2023 and good prospects for 2024, we expect engineering and technology service provider Expleo Group will report EBITDA growth, positive free operating cash flow (FOCF), and a decrease in S&P Global Ratings-adjusted leverage to 5.7x at year-end 2024, from 6.3x in 2023. We therefore revised our outlook on the ratings on Expleo Group and its subsidiaries, Assystem Technologies and Expleo Services SASU, to positive from stable, and affirmed our 'B-' long-term issuer credit rating. We also affirmed our 'B-' issue rating on its €558 million equivalent term loan B and €115 million revolving credit facility (RCF), both due in 2027. The '3' recovery rating remains unchanged, reflecting our expectation of meaningful recovery

...- As a result of its solid performance in 2023 and good prospects for 2024, we expect engineering and technology service provider Expleo Group will report EBITDA growth, positive free operating cash flow (FOCF), and a decrease in S&P Global Ratings-adjusted leverage to 5.7x at year-end 2024, from 6.3x in 2023. - We therefore revised our outlook on the ratings on Expleo Group and its subsidiaries, Assystem Technologies and Expleo Services SASU, to positive from stable, and affirmed our 'B-' long-term issuer credit rating. - We also affirmed our 'B-' issue rating on its 558 million equivalent term loan B and 115 million revolving credit facility (RCF), both due in 2027. The '3' recovery rating remains unchanged, reflecting our expectation of meaningful recovery prospects (50%-70%; rounded estimate: 55%) in the case of a payment default. - The positive outlook reflects our expectation that Expleo Group will maintain adjusted debt leverage below 7x and generate positive FOCF in 2024....

Research Update