S&P hikes Janus International

S&P said it raised its ratings on Janus International Group LLC to B+ from B and its term loan due 2030 to BB- from B+.

“We expect debt leverage to remain below 3x in 2024 even if the company pursues debt-financed acquisitions. This is because of currently low debt balances with debt to EBITDA of 1.6x for the year ended 2023. In 2024, we expect low- to mid-single-digit organic revenue growth mainly due to higher volumes which will benefit from supportive end markets and a good backlog which provides visibility. EBITDA should show a modest improvement due to cost-saving initiatives although margins may decline due to product mix and stable pricing,” S&P said in a press release.

The company’s financial policy supports a higher rating, the agency said. Janus targeted a net debt leverage target of 2x-3x and has kept debt to EBITDA below 3x over the past two years.

Additionally, S&P noted Janus resolved its material weaknesses and received a clean opinion of its internal controls, which previously limited the rating.

The outlook is positive.

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