Voyage Australia Pty Ltd.

The stable outlook reflects our expectation that the company will increase its market position in the enterprise network services industry while limiting pressure on its balance sheet. We expect Voyage's S&P Global Ratings adjusted debt-to-EBITDA ratio to deleverage and sustain below 5.0x during fiscal 2022 and beyond. We could lower the rating if we expect Voyage to sustain a S&P adjusted debt-to-EBITDA ratio above 5.0x either as a result of debt-funded growth or weaker than expected earnings. We consider an upward rating action as unlikely in the near term. However, we may raise the rating if we believe the group can sustain its S&P adjusted debt-to-EBITDA ratio at less than 4.0x and we consider its shareholders' financial policies supportive of

...The completed bid for Australia-based telecommunications provider Vocus Group Ltd. (Vocus) via Voyage Australia Pty Ltd. (Voyage) is a 50% joint venture between Macquarie Infrastructure and Real Assets (MIRA) and Aware Super (Aware). The transaction was implemented on July 22, 2021, following shareholder and regulatory approvals of the Scheme of Arrangement in late June 2021. We refer to Voyage and Vocus interchangeably for the purposes of our forward-looking analysis. Voyage successfully issued about A$2 billion equivalent of secured TLB facilities in late May. The facilities helped Voyage refinance its capital structure and partly funded its buyout by MIRA and Aware, which we view as strategic owners. Our ratings on Voyage reflect the group's growing market position in the enterprise and government segment, infrastructure and service offering, cash flow generation, and credible deleveraging path. The company's smaller size and scale compared to industry peers, competitive markets, low...

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