Tear Sheet: AEA Holdings (Luxembourg) Sarl

While we foresee strong growth in Health and Security Subscription Services (H3S), and a new medical services contract win with the U.S Government, we believe that headroom in the company?s credit metrics will be affected by the ramp-up of these contracts and improvement in S&P Global Ratings-adjusted EBITDA margins. Although AEA Holdings (Luxembourg) S.a.r.l. (ISOS)?s credit metrics are supported by some interest cost savings as a result of debt repricing activities in fiscal 2024, if adjusted EBITDA and working capital fails to improve in line with our expectations, there will be limited headroom under the rating. We expect funds from operations (FFO) to debt will reach 18% in fiscal 2024, significantly improving from 0.1% in 2023, fueled by a normalized

...Rating Component Scores Foreign currency issuer credit rating ##/Stable/-- Local currency issuer credit rating ##/Stable/-- Business risk Fair Country risk Low Industry risk Intermediate Competitive position Fair Financial risk Significant Cash flow/leverage Significant Anchor ## Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Adequate (no impact) Management and governance Neutral (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile ##...

Full Report