...- As a result of high exceptional and refinancing costs, engineering and technology service provider Expleo Group is expected to report a third year of negative free operating cash flow (FOCF) in 2023; 2024 should see FOCF turn positive, at 35.5 million. - The company plans to address its near-term refinancing and liquidity risks by issuing a new term loan B and using the proceeds to repay debt. It will also lengthen its debt maturity profile by extending the maturity of its term loan B and revolving credit facility (RCF). - We assigned our 'B-' long-term issuer credit rating to Expleo Group and its subsidiaries, Assystem Technologies and Expleo Services SASU. We also assigned a 'B-' issue rating to its term loan B and RCF, with a recovery rating of '3'. - The stable outlook indicates that we expect Expleo to complete the refinancing and maintain credit metrics commensurate with the rating for the next 12 months. By year-end 2023, debt to EBITDA is forecast to improve to 6.2x, funds from...
