S&P shifts CLEAResult view to positive

S&P said it changed the outlook for CRCI Longhorn Holdings Inc. (CLEAResult) to positive from stable and affirmed all its ratings, including the B- issuer rating.

“CLEAResult expanded margins during the pandemic despite the challenging macroeconomic environment. The company has demonstrated solid execution during the pandemic and improved its adjusted-EBITDA margins by 340 basis points in 2020, compared to 2019. The business appears to have stabilized, and during the second quarter ended June 30, 2021, revenue jumped by more than 15%, and the past 12 months (LTM) adjusted EBITDA climbed to about $82 million from $77 million,” S&P said in a press release.

For the year ended June 30, the company cut its adjusted debt to EBITDA to 7x from 7.6x for the year before.

“The positive outlook reflects the potential for an upgrade within the next 12 months if we become more certain that improved operating performance and tempered financial policy choices will result in adjusted leverage to be sustained below 7x,” the agency said.

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