Moody's ups Columbus McKinnon view to positive

Moody's Investors Services said it changed Columbus McKinnon Corp.'s outlook to positive and affirmed its existing ratings.

Ratings affirmed including the B2 senior implied rating, the B3 issuer rating, the B3 rating on the $115 million 10% senior secured second-lien notes due 2010, and the Caa1 rating on the $155 million 8.5% senior subordinated notes due 2008.

Moody's does not rate Columbus McKinnon's $65 million senior secured revolving credit facility due 2007.

In changing the rating outlook to positive, Moody's said it recognizes the improvement in Columbus McKinnon's financial and operating performance over the past year as the company benefited from a strong cyclical recovery in the U.S. manufacturing and construction sectors. In addition to higher demand, the company's lowered cost structure and improved efficiency as a result of the extensive restructuring efforts during the downturn also contributed to the performance improvement.

On the other hand, Moody's said the ratings continue to be constrained by the strong cyclicality of Columbus McKinnon's business, intense competition and ongoing pricing pressure within the highly fragmented material handling industry, the company's still high debt leverage, and the long-term impact of a contracting domestic manufacturing base as more U.S. manufacturers move overseas.

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