Research Update: Maxim Crane Works Outlook Revised To Stable On Strong Free Cash Flow Generation; Ratings Affirmed

We believe demand for specialized crane provider Maxim Crane's services ($184 million in 2020 S&P Global Ratings-adjusted EBITDA) will steadily improve following pandemic-related headwinds in 2020. While it could face growth challenges in nonresidential construction, we believe industrial demand should be favorable and that bolt-on acquisitions should result in mid-single-digit revenue growth this year. We also anticipate that Maxim Crane will improve S&P Global Ratings-adjusted EBITDA margins back to the mid-20% area in 2021, which will help drive adjusted leverage to the low-6x area. As a result, we revised the outlook on Maxim Crane to stable from negative. At the same time, we affirmed our 'B-' issuer credit rating and issue rating on the company's second-lien notes. The '4' recovery

...- We believe demand for specialized crane provider Maxim Crane's services ($184 million in 2020 S&P Global Ratings-adjusted EBITDA) will steadily improve following pandemic-related headwinds in 2020. While it could face growth challenges in nonresidential construction, we believe industrial demand should be favorable and that bolt-on acquisitions should result in mid-single-digit revenue growth this year. - We also anticipate that Maxim Crane will improve S&P Global Ratings-adjusted EBITDA margins back to the mid-20% area in 2021, which will help drive adjusted leverage to the low-6x area. - As a result, we revised the outlook on Maxim Crane to stable from negative. At the same time, we affirmed our 'B-' issuer credit rating and issue rating on the company's second-lien notes. The '4' recovery rating on the notes remains unchanged. - The stable outlook reflects our view that demand for the company's equipment in 2021 will moderately increase as its end markets improve--specifically infrastructure...

Research Update