Tear Sheet: Mirion Technologies Inc.

S&P Global Ratings reduced its fiscal-year 2024 free operating cash flow (FOCF) expectations for Mirion to about $40 million. This leads us to forecast the company's FOCF to debt will be about 6% for the fiscal year, which is still in line with our current rating. Mirion's negligible FOCF generation during the first half of 2024, despite a steady expansion in its top-line revenue, indicates it will need to generate substantial cash flow in the back half to the year to achieve FOCF to debt of greater than 10% (as we previously expected). While the May 2024 repricing of the company's term loan will modestly reduce its interest payments--and we expect its capital expenditure (capex) will decline toward historical levels--we

...Rating Component Scores Foreign currency issuer credit rating B+/Stable/-- Local currency issuer credit rating B+/Stable/-- Business risk Weak Country risk Very Low Industry risk Intermediate Competitive position Weak Financial risk Significant Cash flow/leverage Significant Anchor ##- Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Negative (-1 notch) Liquidity Adequate (no impact) Management and governance Neutral (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile b+...

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