Research Update: Ventia Services Group Ltd. Upgraded To 'BBB-' Following IPO And Deleveraging, Off CreditWatch; Outlook Stable

Australia-based infrastructure service provider Ventia Services Group Ltd. (Ventia) has completed an IPO and used proceeds along with its existing cash and a new syndicated term loan to repay outstanding first-lien term loans. Post-IPO, we no longer modify the rating on Ventia as we view the company to be a stand-alone entity rather than a subsidiary of CIMIC Group Ltd. (CIMIC). Neither do we view it as a financial sponsor-owned company. On Nov. 24, 2021, S&P Global Ratings raised its long-term issuer credit rating to 'BBB-' from 'BB'. At the same time, we removed the rating from CreditWatch, where we had placed it with positive implications on Oct. 26, 2021, on the announcement of the IPO and plans to deleverage.

... Ventia Services Group Ltd. (Ventia) has completed an IPO and used proceeds along with its existing cash and a new syndicated term loan to repay outstanding first-lien term loans. - Post-IPO, we no longer modify the rating on Ventia as we view the company to be a stand-alone entity rather than a subsidiary of CIMIC Group Ltd. (CIMIC). Neither do we view it as a financial sponsor-owned company. - On Nov. 24, 2021, S&P Global Ratings raised its long-term issuer credit rating to '###-' from '##'. At the same time, we removed the rating from CreditWatch, where we had placed it with positive implications on Oct. 26, 2021, on the announcement of the IPO and plans to deleverage. - The stable outlook reflects our expectation that following Ventia's IPO, the company will effectively execute its growth strategy over the next two years across its business segments. We also expect the company to maintain headroom in its financial risk profile such that...

Research Update