U.S.-based Max US Bidco Inc. ( d/b/a Alphia) reported higher-than-expected S&P Global Ratings adjusted leverage of about 7.4x (above our 7x downside threshold) for fiscal 2024 due to weak demand, delays in new business ramp up, and higher operating expenses. We forecast significant topline and profit growth will support deleveraging below 7x in fiscal 2025, but weaker-than-expected demand or higher-than-expected operating costs could delay its deleveraging path. Therefore, we revised our outlook to negative from stable. We affirmed our 'B' ratings on the company and its first-lien term loan. The negative outlook reflects the possibility we could lower our ratings on Alphia over the next 12 months if its operating performance does not improve. The company underperformed our expectations in the
