Research Update: Vertiv Group Corp. Ratings Placed On CreditWatch Positive On Strong Operating Performance and Deleveraging

Power and thermal management equipment and service provider Vertiv Group Corp.'s EBITDA more than doubled year over year in the first nine months of 2023, driven by improved volume, pricing, and productivity. This improved S&P Global Ratings-adjusted leverage to 2.6x as of Sept. 30 from 5.3x at the end of 2022. We expect S&P Global Ratings-adjusted leverage to remain below our 4x upgrade threshold and believe Vertiv has a track record of improved EBITDA margin. However, before raising our ratings, we would look for financial policy to be aligned with maintaining such leverage. We anticipate the company will address this in its investor day on Nov. 29, 2023. Therefore, we placed all our ratings, including our 'BB-' issuer credit rating,

...- Power and thermal management equipment and service provider Vertiv Group Corp.'s EBITDA more than doubled year over year in the first nine months of 2023, driven by improved volume, pricing, and productivity. This improved S&P Global Ratings-adjusted leverage to 2.6x as of Sept. 30 from 5.3x at the end of 2022. - We expect S&P Global Ratings-adjusted leverage to remain below our 4x upgrade threshold and believe Vertiv has a track record of improved EBITDA margin. However, before raising our ratings, we would look for financial policy to be aligned with maintaining such leverage. We anticipate the company will address this in its investor day on Nov. 29, 2023. - Therefore, we placed all our ratings, including our '##-' issuer credit rating, on Vertiv on CreditWatch with positive implications. - The CreditWatch reflects an increased likelihood that we could raise our ratings one notch given our forecast for S&P Global Ratings-adjusted leverage to remain under 4x. Given uncertainty around...

Research Update