Research Update: Mirion Technologies Inc. Outlook Revised To Stable From Positive On Slower-Than-Projected Deleveraging, Ratings Affirmed

The impact of the Russia-Ukraine conflict, supply chain and foreign-exchange headwinds, cost inflation, and continued costs associated with Mirion Technologies Inc.'s 2021 business combination have caused it to generate weaker EBITDA than we previously expected. We now forecast its S&P Global Ratings-adjusted leverage will be in the low to mid-6x area as of the end of 2022, which is well above our 5x upgrade threshold. Therefore, we revised our outlook on Mirion to stable from positive and affirmed all of our ratings, including our 'B' issuer credit rating. The stable outlook reflects our expectation for S&P Global Ratings-adjusted leverage in the low- to mid-6x area as of the end of 2022, potentially improving toward 5x in 2023 on tailwinds in

...- The impact of the Russia-Ukraine conflict, supply chain and foreign-exchange headwinds, cost inflation, and continued costs associated with Mirion Technologies Inc.'s 2021 business combination have caused it to generate weaker EBITDA than we previously expected. - We now forecast its S&P Global Ratings-adjusted leverage will be in the low to mid-6x area as of the end of 2022, which is well above our 5x upgrade threshold. - Therefore, we revised our outlook on Mirion to stable from positive and affirmed all of our ratings, including our 'B' issuer credit rating. - The stable outlook reflects our expectation for S&P Global Ratings-adjusted leverage in the low- to mid-6x area as of the end of 2022, potentially improving toward 5x in 2023 on tailwinds in its nuclear power and defense end markets and continued growth in its medical segment. Our forecast assumes that the company's supply chain challenges ease modestly and many of the costs associated with its 2021 business combination roll...

Research Update