Research Update: Outlook On Iron Mountain Inc. Revised To Negative On Higher Leverage And Liquidity Risks; 'BB-' Rating Affirmed

We expect Boston-based global storage and information management services company Iron Mountain Inc. (IRM) will face revenue and profitability declines over the next 12 months as a result of COVID-19-related business closures and a higher restructuring cost. As a result, we now forecast the company's credit measures will weaken, and leverage will temporarily breach our 6x rating downgrade threshold before recovering in 2021. Nevertheless, our favorable assessment of IRM's business remains largely intact, especially if it can realize benefits from its enhanced restructuring program that improve profit margins by 300-400 basis points. We are therefore revising our outlook on IRM to negative from stable and affirming all our ratings. The negative outlook reflects uncertainty regarding IRM's operating performance, liquidity, and

...- We expect Boston-based global storage and information management services company Iron Mountain Inc. (IRM) will face revenue and profitability declines over the next 12 months as a result of COVID-19-related business closures and a higher restructuring cost. - As a result, we now forecast the company's credit measures will weaken, and leverage will temporarily breach our 6x rating downgrade threshold before recovering in 2021. - Nevertheless, our favorable assessment of IRM's business remains largely intact, especially if it can realize benefits from its enhanced restructuring program that improve profit margins by 300-400 basis points. - We are therefore revising our outlook on IRM to negative from stable and affirming all our ratings. - The negative outlook reflects uncertainty regarding IRM's operating performance, liquidity, and leverage reduction amid expected earnings volatility because of the ongoing COVID-19 pandemic and costs from the restructuring program, as well as its financial...

Research Update