Mesa, Ariz.-based traffic safety and tolling services provider Verra Mobility Corp. enjoyed substantial margin improvement over the past year due to contributions from acquired higher-margin competitor Highway Tolling Administration (HTA) as well as solid operating performance. We expect EBITDA-based deleveraging will support leverage below 4x on a sustained basis. As a result, we are revising our outlook to positive from stable, which reflects our expectation that improving profit trends and good free operating cash flow (FOCF) generation will reduce leverage to and keep it below 4x. This improved leverage profile is further supported by reduced collective financial sponsor ownership (Platinum and Gores) to below 40%. The positive outlook reflects the improvement in profitability, free cash flow generation, and leverage stemming
