Moody’s ups Container Store SGL

Moody's Investors Service said it changed Container Store, Inc.'s outlook to positive from stable and upgraded the speculative grade liquidity rating to SGL-2 from SGL-3.

Additionally, the agency affirmed the B2 corporate family rating, B2-PD probability of default rating and B2 senior secured credit facility rating.

Moody’s said the change in outlook to positive from stable reflects Moody's expectation for improved credit metrics and cash flow generation over the next 12 to 18 months as a result of earnings growth driven by run rate savings realization from the 2017 optimization program.

The upgrade of the speculative grade liquidity rating to SGL-2 from SGL-3 incorporates Moody's projections for positive free cash flow, good revolver availability and covenant cushion, and lack of near term maturities, the agency added.

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