S&P Global Ratings has raised the outlook on smart meter manufacturer Itron Inc. to stable from negative, based on improvements in its profitability and debt leverage in 2019.
The rating agency also affirmed all ratings on Itron, including the issuer credit rating at BB, unsecured issue-level rating at BB- and an unsecured recovery rating of 5.
Ratings raised the outlook to stable based on the expectation that Itron's leverage will remain below 4x as steady execution of the company's strategy gradually improves profitability. The company's restructuring in 2018 and integration of Silver Spring Networks has also improved its profitability.
"Supply chain challenges have also eased. Higher profitability improved S&P Global Ratings-adjusted debt to EBITDA to 3.5x as of June 30, 2019, which is below our 4x downside rating trigger," the rating agency said in an Aug. 15 ratings action.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.