S&P affirms HT Global, notes

S&P said it affirmed its BB- long-term corporate credit rating on HT Global IT Solutions Holdings Ltd. and affirmed its BB- long-term issue rating on the company's outstanding senior secured notes due 2021.

The outlook is stable.

“We affirmed the rating because we believe HT Global's faster-than-industry growth and stable margins should temper the impact of increased debt to fund a proposed shareholder distribution,” the agency said in a news release.

“We do not expect the company to breach our downgrade trigger of a debt-to-EBITDA ratio of 4.0x if it proceeds with plans to raise about $80 million–$85 million of debt to fund the dividends. We estimate the additional debt will result in pro forma leverage of 3.1x for 2017, higher than our previous estimate of 2.7x.”

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