Moody’s ups Allegion to investment-grade

Moody's Investors Service said it upgraded the ratings of Allegion plc to Baa3 following the announcement that the company closed on a new senior unsecured credit facility due 2022.

The new senior unsecured credit facility is assigned at Baa3 and the senior unsecured notes were upgraded to Baa3 from Ba2.

The new senior unsecured credit facility consists of a $500 million revolver and a $700 million term loan A.

The outlook is stable.

The corporate family rating, probability of default rating and speculative grade liquidity rating were withdrawn because they are ratings assigned to non-investment-grade companies. The senior secured revolver and secured term loan A due 2020 will be withdrawn because they were replaced with the new senior unsecured bank facility.

Moody’s said the upgrade reflects Allegion's transition from a predominantly secured debt capital structure to a fully unsecured structure, which eliminated the contractual subordination that existed between its former secured bank credit facility and unsecured notes.

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