Narrow product base, niche end market, and limited scale; Short track record operating as a stand-alone entity; Strong position in the fleet management systems (FMS) industry with high customer renewal rates; and Moderate margin expansion from ongoing transition to recurring subscription revenue model and RoadNet integration. Substantial debt burden, with leverage expected to remain above 6x for the next 12 months; Financial sponsor ownership; and Modest free operating cash flow generation. The stable outlook reflects our expectation that the product transition from satellite connectivity to newer, cellular-based offerings will generate EBITDA growth, and modest FOCF beyond this fiscal year. We could downgrade the company if a decline in customer renewals or lack of new subscriptions to Omnitracs' software offerings, resulting
