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Prospect News home > News index > List of issuers E > Headlines for Emeco Holdings Ltd. > News item |
Fitch upgrades Emeco
Fitch Ratings said it upgraded Emeco Holdings Ltd.'s long-term issuer default rating to B from B-, reflecting that the company is well positioned to capitalize on its increased fleet size and rising rental yield following a series of acquisitions.
The outlook is stable.
Fitch said it expects the company's business and financial profile to further improve following news of the company's planned A$80 million equity-funded acquisition of Matilda Equipment.
The acquisition will be funded by a fully underwritten A$90 million pro rata accelerated non-renounceable entitlement offer and is targeted for completion in early July 2018, the agency noted.
The acquisition provides Emeco with access to Matilda's fleet, bypassing growth capital expenditure and freeing cash for continued debt reduction, Fitch explained.
The agency said it believes Emeco is well-positioned to benefit from current mining-sector conditions, which are showing increased exploration and production activity.
The company also benefits from tight rental-market supply, Fitch said.
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