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Investing.com -- Fitch Ratings has upgraded RELX plc’s Long-Term Issuer Default Rating to ’A-’ from ’BBB+’ with a Stable outlook, the agency announced Friday.
The upgrade reflects RELX’s consistent operating performance and resilient business model driven by its well-diversified portfolio with leading positions in global professional information and analytics segments. Fitch highlighted the company’s disciplined approach to capital allocation and leverage management.
RELX has demonstrated strong operating results supported by its subscription-based revenue model and long-standing client relationships in scientific, technical, and legal information services. The company maintained a 37.5% EBITDA margin in 2024, which Fitch expects to expand slightly over time.
Management has followed a conservative approach to leverage, targeting net debt/EBITDA below 2.5x, though operating closer to 2.0x (1.8x in 2024). The company balances capital allocation between organic growth, shareholder returns, and selective acquisitions while maintaining credit quality.
Fitch projects RELX will generate free cash flow exceeding £1.5 billion annually over the medium term, supported by high operating margins and moderate capital expenditure requirements. The company’s pre-dividend free cash flow margin of 20% ranks among the strongest in the sector.
RELX benefits from strong market positions across its four business segments: Scientific, Technical & Medical (TASE:BLWV); Risk; Legal; and Exhibitions. Its global scale, data assets, and technology platforms create significant competitive advantages.
The company has successfully transitioned from traditional publishing to a data-driven, analytics-led business model, with ongoing investment in technology and artificial intelligence strengthening its value proposition.
RELX has achieved 7-8% average underlying organic revenue growth annually over the past five years, with operating margins around 31%. Fitch expects this trajectory to continue based on supportive industry trends and increasing adoption of the company’s services.
Fitch’s key assumptions include revenue growth of approximately 3% in 2025, followed by 3-4% annually through 2029, with EBITDA margins between 38-39% during this period.
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