Veregy Intermediate Inc., a Phoenix-based provider of energy efficiency solutions, has improved its liquidity position in 2023 through solid backlog growth and conversion and easing supply chain and labor constraints. As a result, we revised our outlook to stable from negative. We affirmed all our ratings on the company, including the 'B-' issuer credit rating. The stable outlook reflects our expectation that Veregy will expand and convert its signed backlog, contributing to mid-single-digit percent annual revenue and earnings growth, about $5 million-$10 million in unadjusted free operating cash flow (FOCF), and adequate liquidity over the next 12 months. The stable outlook reflects our expectation Veregy will increase and convert its signed backlog, contributing to mid-single-digit percent annual revenue and earnings
