S&P boosts CoAdvantage

S&P said it raised its ratings on CoAdvantage Inc. to B from B- and its first-lien and second-lien credit facilities one notch to B+ and CCC+, respectively.

“CoAdvantage's leverage has been well below our 7x upgrade threshold because of strong hiring trends and wage inflation in its end markets. With leverage of 5.2x at year-end 2022, we believe the company has sufficient cushion to withstand a shallow economic recession and maintain leverage below 7x. Leverage has improved significantly over the past two years as a result of strong earnings growth due to wage inflation, low unemployment rates, new business wins and robust economic growth in its key southeastern U.S. end markets,” the agency said in a press release.

S&P said it projects the company will generate about $30 million in unadjusted free operating cash flow in 2023 and 2024 despite deteriorating industry operating conditions.

The outlook is stable.

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