Moody's upgrades Allegion

Moody's Investors Service said it upgraded the senior unsecured notes of Allegion US Holding Co. Inc., and the senior unsecured notes and senior unsecured bank credit facility ratings of Allegion plc to Baa2 from Baa3.

The upgrade reflects the expectation of improvement in credit metrics through 2023, including leverage trending to 2x and interest coverage increasing to 13.4x, both because of increased margin growth. "Our forecast considers the easing of supply chain constraints beginning in 2022, resulting in the realization of earnings from backlogged orders as well as improved productivity," said Griselda Bisono, a Moody's vice president and senior analyst, in a press release.

"The upgrade also recognizes substantial improvement in operating results and maintenance of conservative financial policies over the past four years, resulting in a strengthening of key credit metrics that we expect will be maintained," added Bisono.

The outlook remains stable.

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