Moody's upgrades Doncasters

Moody's Investors Service said it upgraded the corporate family rating of Alloy Parent Ltd. (Doncasters) to Caa1 from Caa2, the company's probability of default rating to Caa1-PD from Caa2-PD and to Caa1 from Caa2 the outstanding £281 million sterling-equivalent guaranteed senior secured first-lien term loans due 2024 issued by Doncasters US Finance LLC and Doncasters US LLC, which are wholly owned indirect subsidiaries of Alloy Parent. The outlook on all the ratings has been changed to stable from positive.

“Today's rating action follows the company's acquisition of Jiangyin Uni-Pol Co. Ltd. (Uni-Pol), with the issuance of $52 million U.S. dollar-equivalent guaranteed senior secured add-on first lien term loans due 2024 to part finance the acquisition, alongside the extension and upsizing of the company's ABL facility,” Moody’s said in a press release.

The improved ratings reflect the operational improvements, new business, and continued recovery in aerospace and automotive end markets, but also the risks in integrating Uni-Pol and limited cash among other factors, the agency said.

“The stable outlook reflects Moody's expectation that Doncasters will continue to grow EBITDA as the company's end markets continue to recover from the pandemic, and due to new business wins, leading to Moody's-adjusted leverage, which excludes the PIK, reducing towards 6x in the next 12-18 months,” the agency said in a press release.

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