Research Update: NAVEX TopCo Inc. Upgraded To 'B' On Improved Performance And Declining Leverage; Stable Outlook

U.S.-based ethics and compliance (E&C) software as a service (SaaS) provider, NAVEX TopCo Inc.'s credit metrics have improved materially to the mid-5x area as of Sept. 30, 2021, outperforming our previous forecast. As a result, we raised our issuer credit rating to 'B' from 'B-'. At the same time, we raised our issue-level rating on NAVEX's first-lien debt to 'B' from 'B-', and on its second-lien debt to 'CCC+' from 'CCC'. The recovery ratings remain '3' and '6', respectively. The stable outlook on NAVEX reflects our expectation that continued growth in the E&C software market, increased penetration into the company's existing customer base and a high degree of recurring revenue will enable the company to maintain leverage in the 5.0x-6.0x

...- U.S.-based ethics and compliance (E&C) software as a service (SaaS) provider, NAVEX TopCo Inc.'s credit metrics have improved materially to the mid-5x area as of Sept. 30, 2021, outperforming our previous forecast. - As a result, we raised our issuer credit rating to 'B' from 'B-'. - At the same time, we raised our issue-level rating on NAVEX's first-lien debt to 'B' from 'B-', and on its second-lien debt to '###+' from '###'. The recovery ratings remain '3' and '6', respectively. - The stable outlook on NAVEX reflects our expectation that continued growth in the E&C software market, increased penetration into the company's existing customer base and a high degree of recurring revenue will enable the company to maintain leverage in the 5.0x-6.0x area over the next 12 months....

Research Update