S&P moves Symplr outlook to negative

S&P said it changed its outlook for Symplr Software Intermediate Holdings Inc. to negative from stable and affirmed its B- issuer rating.

“Our outlook reflects our belief that Symplr's ability to generate continuous positive cash flow may be more precarious than we previously expected, especially against the backdrop of interest rate increases and multiyear efforts to integrate its acquisitions. In the first half of 2022, the company's bookings mix has shifted toward recurring services and access management products, which while favorable for revenue stability, have a longer billings recognition and cash-collection period compared with a typical software as a service (SaaS) booking and no associated implementation and hardware needs,” the agency said in a press release.

“Nevertheless, with no debt maturities until 2025, a somewhat flexible cost structure, and an expectation the company will halt acquisitions and delay certain projects if necessary in response to unfavorable business, financial or economic conditions, or internal setbacks, we believe the company still has time to grow into its capital structure via EBITDA growth,” S&P noted.

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