Vizient Inc. Rating Raised To 'BB-' From 'B+'; Debt Rated 'BB-' Outlook Stable

  • Vizient Inc.'s leverage is trending lower, and we believe it will remain below 4.5x.
  • We are raising our issuer credit rating to 'BB-' from 'B+'. The outlook is stable.
  • We are assigning a 'BB-' issue-level rating to the proposed first-lien debt. The recovery rating is '3', indicating our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.
  • The stable outlook reflects our expectation that the company's revenue will increase at a low- to mid-single-digit percentage rate and its EBITDA margin will remain stable to slightly lower.
NEW YORK (S&P Global Ratings) April 5, 2019--S&P Global Ratings today took the 
rating actions listed above. We raised the rating because we expect the 
company to pursue its acquisition strategy but keep leverage below 4.5x. The 
company's growth and debt reduction has enabled it to reduce leverage. Its 
ample cash flow enables both actual debt repayment and the capacity to fund 
modest acquisition activity. We believe that the company will generate more 
than $200 million in discretionary cash flow, which the company will use for 
tuck-in acquisitions. 

The stable outlook reflects our expectation that the company's revenue will 
increase at a low- to mid–single-digit percent rate and its EBITDA margin will 
remain stable or modestly erode. It also reflects our expectation that despite 
acquisition activity, leverage will remain below 4.5x.

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