Demand remains strong for data center equipment and services provider Vertiv Group Corp.'s (the subsidiary of publicly-listed parent company Vertiv Holdings Co.) offerings. It is exhibiting solid operating performance and has outperformed our expectations for two consecutive quarters. We raised our issuer credit rating and secured credit facility rating by one notch to 'BB-'. The positive outlook reflects our view that absent a severe shock to the global macroeconomic environment, there is a one-in-three chance Vertiv will generate credit measures appropriate for a higher rating, namely, adjusted debt to EBITDA within 2x-3x and funds from operations (FFO) to adjusted debt of greater than 30%, despite the near-term incidence of temporary cost inflation. The company now has greater capacity to undertake
