S&P views Emerald negatively

S&P said it revised its outlook for Emerald Technologies (U.S.) AcquisitionCo. Inc. to negative from stable and affirmed the B- issuer rating and B issue-level and 3 recovery ratings on its debt.

“Due to the large decline in revenue from Emerald's largest customer, we believe its credit metrics will see headwinds in its 2023 performance. We expect Emerald's revenue to decline more than 15% year over year in 2023 due to the large customer decline. While its EBITDA margins will stay stable at 8%-10%, the large decline in revenue will increase leverage to the mid-10x area in 2023,” the agency said in a press release.

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