Research Update: The Brink's Co. Outlook Revised To Positive From Stable On Improving Profitablity; Ratings Affirmed

Richmond, Va.-based The Brink's Co. reported strong operating performance for the quarter ended June, 30 2021, with S&P Global Ratings' adjusted debt leverage improving to the low-4x area (pro forma for G4S) nearing our 4x upgrade threshold. Global cash in circulation is at historical highs, with Brink's processing more U.S. cash than in 2019, modestly lessening our concern of accelerating consumer behavioral shifts toward noncash payment alternatives. Accordingly we revised the outlook on Brink's to positive from stable. We are affirming our 'BB' issuer credit rating. The positive outlook reflects our expectation that we could raise our ratings on Brink's within the next 12 to 18 months when economies fully reopen, supporting revenue and earnings expansion and allowing S&P Global

...- Richmond, Va.-based The Brink's Co. reported strong operating performance for the quarter ended June, 30 2021, with S&P Global Ratings' adjusted debt leverage improving to the low-4x area (pro forma for G4S) nearing our 4x upgrade threshold. - Global cash in circulation is at historical highs, with Brink's processing more U.S. cash than in 2019, modestly lessening our concern of accelerating consumer behavioral shifts toward noncash payment alternatives. - Accordingly we revised the outlook on Brink's to positive from stable. We are affirming our '##' issuer credit rating. - The positive outlook reflects our expectation that we could raise our ratings on Brink's within the next 12 to 18 months when economies fully reopen, supporting revenue and earnings expansion and allowing S&P Global Ratings' adjusted leverage to return to below 4x and free operating cash flow (FOCF) to debt above 10%....

Research Update