S&P raises Transcom TopCo

S&P said it raised its ratings on Transcom TopCo AB and its €315 million senior secured floating rate notes due 2026 to B from B-.

Transcom's operational performance improved substantially since it refinanced its capital structure in June 2021. “In 2021 and 2022, sales expanded 11.7% and 15.1% respectively driven by a shift in sales toward the more dynamic and higher growth technology and e-commerce sector from more traditional services and utilities, as well as the telecommunications and cable sectors. Revenue growth was also spurred by the development of near and offshore platforms with the opening of 30 new sites in the past two years,” S&P said in a press release.

The agency said it projects Transcom’s sales will widen to 10.5%-11.5% in 2023 and 10%-11% in 2024 leading to leverage declining to about 3.5x by year-end 2024 and positive free operating cash flow of about €35 million.

The outlook is stable.

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