S&P Global Ratings assigned ORBCOMM Inc. a corporate credit rating of B.
The rating reflects the limited size of the company, along with its operations in quite a limited telecom niche, the competitive and fragmented nature of the Internet of Things market, and some level of revenue concentration with the company's top customers, the rating agency said March 30.
The rating agency expects the company's pro forma adjusted leverage in the mid-6x area to drop to the mid-5x region in 2017, due to "organic EBITDA growth and potential modest acquisitions." The agency also expects the company's free operating cash flow to be positive.
The outlook on the company is stable.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.