S&P turns ICON outlook to positive

S&P said it revised its outlook for ICON plc to positive from stable and affirmed the BB+ ratings on the issuer and its senior secured debt. The 3 recovery rating on the debt is unchanged.

ICON posted healthy results enabling it to lower its debt faster than the agency expected.

“Robust revenue growth, synergy realization, and cash flow enabled the company to lower S&P Global Ratings-adjusted leverage to 5.6x at end-2021 from the 6.2x we anticipated previously. This trend has continued in 2022, prompting us to expect full-year revenue of about $7.8 billion, realizing $110 million in cost-synergies versus the company's initially planned $45 million, and $800 million of debt repayment (of which $200 million will be repaid in fourth-quarter 2022),” S&P said in a press release.

The agency said it forecasts ICON will post adjusted debt to EBITDA of 3x at end-2022 versus its previous 3.5x projection.

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