We expect continued travel growth in 2024 will drive 5%-7% revenue growth and steady S&P Global Ratings-adjusted EBITDA expansion. Our base case contemplates a slowdown in global macroeconomic growth and an economic soft landing, as opposed to an outright recession. However, even in the event of an economic downturn, we believe Verra Mobility?s revenues will remain resilient given the recurring revenue model of its Government Solutions (43.9% of 2023 revenues) customer contracts and the naturally strong customer collections prospects. Still, a recession would likely impact the volumes of key rental car customers in its Commercial Services (45.6% of 2023 revenues) segment. Nevertheless, Verra Mobility maintained a cushion to our 4x rating downside threshold sufficient to withstand an S&P Global Ratings-adjusted
