Research Update: Perenti Ltd. Upgraded To 'BB+' On Solid Operational Performance And Supportive Financial Policies; Outlook Stable

Perenti Ltd. has continued to improve operational performance across its portfolio. We expect the Australia-based company's S&P Global Ratings-adjusted ratio of gross debt to EBITDA to remain below 1.5x over the next 12-18 months. Perenti's conservative financial policies underpin its improving credit profile. The target of the mining services provider to operate under net leverage of 1.0x (company measure) and its increased scale following the DDH1 Ltd. acquisition enhance its capacity to manage commodity cycle downturns. On Oct. 28, 2024, S&P Global Ratings raised its long-term issuer credit rating on Perenti to 'BB+' from 'BB'. At the same time, we raised our issue ratings to 'BB+' (recovery rating of '3') on the company's US$202.9 million and US$350 million senior unsecured

...- Perenti Ltd. has continued to improve operational performance across its portfolio. We expect the Australia-based company's S&P Global Ratings-adjusted ratio of gross debt to EBITDA to remain below 1.5x over the next 12-18 months. - Perenti's conservative financial policies underpin its improving credit profile. The target of the mining services provider to operate under net leverage of 1.0x (company measure) and its increased scale following the DDH1 Ltd. acquisition enhance its capacity to manage commodity cycle downturns. - On Oct. 28, 2024, S&P Global Ratings raised its long-term issuer credit rating on Perenti to '##+' from '##'. At the same time, we raised our issue ratings to '##+' (recovery rating of '3') on the company's US$202.9 million and US$350 million senior unsecured notes. We also affirmed our '###-' issue rating (recovery rating of '1') on the company's A$445 million senior secured bank facilities. - The stable rating outlook reflects our expectation that Perenti will...

Research Update