S&P moves Matrix outlook to negative

S&P said it revised its outlook for Matrix Holdings Inc. (Mobileum Inc.) to negative from stable and affirmed its ratings, including its B- issuer rating.

“We expect S&P Global Ratings-adjusted leverage for Mobileum to remain elevated through 2023. The company has not reduced leverage as quickly as we initially expected following its March 2022 financing transaction. Mobileum was unable to meet EBITDA growth expectations in 2022, driven by lower-than-expected top-line growth, partially due to foreign currency exchange rates, as well as weaker margins because of higher staffing levels,” the agency said in a statement.

S&P warned it could lower Mobileum’s ratings within the next 12 months if it continues posting negative free cash flow such that its capital structure looks unsustainable over the long term.

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