Keystone Acquisition Corp March 2018 Credit Opinion

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by  Moodys

Revenue ($Millions - Left Axis) Debt/EBITDA (Right Axis)
What Could Change the Rating Up (Leverage)
$190.0 6.5x
$170.0
$170.0 $161.4
$156.7 6.0x
$150.0 6.0x
$130.0 5.7x 5.5x
5.5x
$110.0
5.0x
$90.0
4.5x
$70.0
$50.0 4.0x
PF 2016 LTM 9/30/17 FY 2018 (P)

Assessment and Eligibility
14%
Quality Management
43%
Case Management
43%
KEPRO's Revenue ($Millions) Median Revenue of Moody's B3 Rated Corporates Median Revenue of Moody's Single-B Rated Corporates
$1,000.0
$872.0
$900.0
$800.0
$700.0
$592.0
$600.0
$500.0
$400.0
$300.0
$200.0 $156.7 $161.4 $170.0
$100.0
$-
2016 LTM 9/30/17 FY 2018 (P)
Rest of Customers
42%
Top 4 Customers
58%
Rating Factors
Keystone Acquisition Corp.
Business and Consumer Service Industry Grid [1][2] LTM 9/30/2017 Moody's 12-18 Month Forward View
Factor 1 : Scale (20%) Measure Score Measure Score
a) Revenue (USD Billion) $0.2 Ca $0.2 Ca
Factor 2 : Business Profile (20%)
a) Demand Characteristics B B B B
b) Competitive Profile B B B B
Factor 3 : Profitability (10%)
a) EBITA Margin 32.1% A 31% A
Factor 4 : Leverage and Coverage (40%)
a) Debt / EBITDA 5.7x B 5.5x B
b) EBITA / Interest 1.8x B 1.8x B
c) RCF / Net Debt 0.2% Ca 6.3% Caa
Factor 5 : Financial Policy (10%)
a) Financial Policy B B B B
Rating:
a) Indicated Rating from Grid B3 B2
b) Actual Rating Assigned B3
Moody's-Adjusted Debt Breakdown
Keystone Acquisition Corp.
FYE FYE FYE LTM Ending
Dec-14 Dec-15 Dec-16 Sep-17
(in US Millions)
As Reported Debt 0.0 0.0 240.4 305.0
Operating Leases 4.7 9.4 9.4 9.4
Moody's-Adjusted Debt 4.7 9.4 249.8 314.4
Moody's-Adjusted EBITDA Breakdown
Keystone Acquisition Corp.
FYE FYE FYE LTM Ending
Dec-14 Dec-15 Dec-16 Sep-17
(in US Millions)
As Reported EBITDA 6.9 33.1 51.9 38.0
Operating Leases 1.2 3.1 3.1 3.1
Unusual 0.0 0.0 -2.6 14.0
Moody's-Adjusted EBITDA 8.2 36.2 52.4 55.1