Moody's upgrades Emeco

Moody's Investors Service said it upgraded Emeco Holdings Ltd.'s corporate family rating to B3 from Caa1 and Emeco Pty Ltd.'s backed senior secured debt rating to B3 from Caa1.

The agency also changed the outlooks on both companies to stable from positive.

The upgrades reflect Emeco's improving credit profile, underpinned by increased earnings and margins during the last three quarters, Moody's said.

The successful closing of the Force Equipment acquisition, funded completely by an equity raising, will further increase Emeco's fleet size, earnings, geographic and commodities diversification, as well as provide the company with repair and maintenance capabilities, the agency explained.

Moody's said it expects Emeco's adjusted debt-to-EBITDA ratio to register in the range of 3x to 3.5x for fiscal 2018, which is a level comfortably above the Caa1 rating up-driver of less than 4x.

The company will continue to benefit from the improved operating environment in Australia, where mining equipment supply has tightened, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.