The stable outlook on PPT Holdings I LLC reflects S&P Global Ratings' view that the company will continue to generate consistent organic revenues between 10%-11%, and maintain relatively consistent EBITDA margins. We expect leverage to remain high, at the mid-6x and free operation cash flow to debt to be between 6%-8%. The outlook reflects our expectation that the company will continue to maintain a relatively acquisitive growth strategy. We could consider lowering the ratings if the company generates negative free cash flow such that we deem its capital structure to be unsustainable. This could be caused by increased competition from hardware original equipment manufacturers (OEMs) or if integration risks materialize into higher costs and lower EBITDA margins. We could consider
