Research Update: Optiv Inc. Upgraded To 'CCC+' On Improving Operating Performance And Better Debt Pricing; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Optiv Inc. Upgraded To 'CCC+' On Improving Operating Performance And Better Debt Pricing; Outlook Stable

Research Update: Optiv Inc. Upgraded To 'CCC+' On Improving Operating Performance And Better Debt Pricing; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Optiv Inc. Upgraded To 'CCC+' On Improving Operating Performance And Better Debt Pricing; Outlook Stable
Published Dec 07, 2020
6 pages (2549 words) — Published Dec 07, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We now anticipate that Optiv Inc. will generate positive free cash flow in 2020, driven by better-than-expected security services and technology bookings. Reported free cash flow to debt is likely to improve to about 2% in fiscals 2020 and 2021. We also view the risk of another distressed exchange to be lower, due to improved pricing for Optiv's debt. We are raising our rating on Optiv to 'CCC+' from 'CCC'. Simultaneously, we are also raising our issue-level rating on Optiv's first-lien debt to 'CCC+' from 'CCC' and its second-lien debt to 'CCC-' from 'CC'. The stable outlook reflects our view that despite elevated leverage, Optiv's improving backlog and bookings will result in modest revenue growth and positive free cash flow

  
Brief Excerpt:

...- We now anticipate that Optiv Inc. will generate positive free cash flow in 2020, driven by better-than-expected security services and technology bookings. Reported free cash flow to debt is likely to improve to about 2% in fiscals 2020 and 2021. We also view the risk of another distressed exchange to be lower, due to improved pricing for Optiv's debt. - We are raising our rating on Optiv to '###+' from '###'. - Simultaneously, we are also raising our issue-level rating on Optiv's first-lien debt to '###+' from '###' and its second-lien debt to '###-' from '##'. - The stable outlook reflects our view that despite elevated leverage, Optiv's improving backlog and bookings will result in modest revenue growth and positive free cash flow generation over the next 12 months....

  
Report Type:

Research Update

Ticker
OPTV
Issuer
Optiv Inc.
GICS
IT Consulting & Other Services (45102010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Optiv Inc. Upgraded To 'CCC+' On Improving Operating Performance And Better Debt Pricing; Outlook Stable" Dec 07, 2020. Alacra Store. May 18, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Optiv-Inc-Upgraded-To-CCC-On-Improving-Operating-Performance-And-Better-Debt-Pricing-Outlook-Stable-2566627>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Optiv Inc. Upgraded To 'CCC+' On Improving Operating Performance And Better Debt Pricing; Outlook Stable Dec 07, 2020. New York, NY: Alacra Store. Retrieved May 18, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Optiv-Inc-Upgraded-To-CCC-On-Improving-Operating-Performance-And-Better-Debt-Pricing-Outlook-Stable-2566627>
  
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