Research Update: Madison IAQ LLC Outlook Revised To Positive From Stable On Solid EBITDA Growth; 'B-' Rating Affirmed

Madison IAQ LLC grew its S&P Global Ratings-adjusted EBITDA meaningfully in the first half of 2023, which translated into S&P Global Ratings-adjusted leverage improving to 6.6x as of June 30, 2023, from 7.6x at the end of 2022. We believe Madison IAQ will maintain the margin improvements it achieved over the past few quarters, and we forecast its 2023 year-end S&P Global Ratings-adjusted leverage will improve further toward the low- to mid-6x area, a level we believe aligns with a one-notch higher rating. Therefore, we revised our outlook on Madison IAQ to positive from stable. At the same time, we affirmed all ratings, including our 'B-' issuer credit rating. The positive outlook reflects our forecast for continued, albeit decelerating, S&P

...- Madison IAQ LLC grew its S&P Global Ratings-adjusted EBITDA meaningfully in the first half of 2023, which translated into S&P Global Ratings-adjusted leverage improving to 6.6x as of June 30, 2023, from 7.6x at the end of 2022. - We believe Madison IAQ will maintain the margin improvements it achieved over the past few quarters, and we forecast its 2023 year-end S&P Global Ratings-adjusted leverage will improve further toward the low- to mid-6x area, a level we believe aligns with a one-notch higher rating. - Therefore, we revised our outlook on Madison IAQ to positive from stable. - At the same time, we affirmed all ratings, including our 'B-' issuer credit rating. - The positive outlook reflects our forecast for continued, albeit decelerating, S&P Global Ratings-adjusted EBITDA growth in the second half of this year, translating to S&P Global Ratings-adjusted leverage improving toward the low- to mid-6x area at year-end and remaining solidly under 7x through 2024....

Research Update