Research Update: Thevelia Holdings 'B' Rating Affirmed On Stable Business Performance; Outlook Stable

Thevelia Holding Ltd. will likely have tighter EBITDA interest coverage and weaker cash flow because of higher interest rates. That said, we believe the company's growing EBITDA from stable business and corporate services will be sufficient to cover higher interest expenses and support free operating cash flow (FOCF). We affirmed our 'B' long-term issuer credit rating on Thevelia. We also affirmed the 'B' long-term issue rating on the first-lien term loan B of the company's finance subsidiary, Thevelia (US) LLC. The recovery rating is '3'. The stable rating outlook reflects our expectation that Thevelia will have faster growth than in Asia's GDP over the next 12 months owing to growing demand for business and corporate services in the region, and

...- Thevelia Holding Ltd. will likely have tighter EBITDA interest coverage and weaker cash flow because of higher interest rates. - That said, we believe the company's growing EBITDA from stable business and corporate services will be sufficient to cover higher interest expenses and support free operating cash flow (FOCF). - We affirmed our 'B' long-term issuer credit rating on Thevelia. We also affirmed the 'B' long-term issue rating on the first-lien term loan B of the company's finance subsidiary, Thevelia (US) LLC. The recovery rating is '3'. - The stable rating outlook reflects our expectation that Thevelia will have faster growth than in Asia's GDP over the next 12 months owing to growing demand for business and corporate services in the region, and the company's cost initiatives. This should enable Thevelia to cover the higher interest expenses and maintain positive FOCF over the next 12 months....

Research Update