Fitch shifts Allison Transmission view to positive

Fitch Ratings said it revised the outlook to positive from stable and affirmed the long-term issuer default ratings of Allison Transmission Holdings, Inc. and its Allison Transmission, Inc. subsidiary at BB. In addition, the agency affirmed the ratings on the subsidiary's senior unsecured notes at BB/RR4.

“Based on Fitch's revised ‘Corporates Recovery Ratings and Instrument Ratings Criteria,’ dated April 9, 2021, Fitch has upgraded the ratings on ATI's secured revolver and term loan B to BBB-/RR1 from BB+/RR1. Fitch has removed ATI from under criteria observation (UCO),” the agency said in a press release.

The revision of the parent’s outlook reflects the expectation that earnings and free cash flow will stay strong over the intermediate term, even if margins over the next several years do not rise to pre-pandemic levels, Fitch 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.