Research Update: Italian Core Banking Software Provider Cedacri S.p.A. Rating Affirmed At 'B'; Outlook Negative

We reassessed our view of Cedacri's ownership structure and now consider the company as non-financial-sponsor-controlled. This is because of the parent ION Group's long-term investment strategy, shared brand name, and co-mingling of representation across the board of directors at the portfolio companies. Although the reassessment does not have any immediate effect on the rating, the deterioration or improvement of any individual company could have implications on our rating on Cedacri. We affirm our 'B' issuer and issue credit ratings on Cedacri. The negative outlook reflects the risk that Cedacri's S&P Global Ratings-adjusted debt to EBITDA could significantly exceed 7x in 2023 and 2024 if the company's topline growth or synergy realization fails to meet the targets or if the company

...Issuer credit rating B/Negative/-- Business risk Weak Country risk Moderately high Industry risk Intermediate Competitive position Weak Financial risk Highly leveraged Cash flow/leverage Highly leveraged Anchor b Modifiers Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Adequate (no impact) Management and governance Fair (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile b...

Research Update