Moody’s rates Allison loans Baa2

Moody’s Investors Service said it assigned Baa2 ratings to Allison Transmission, Inc.’s new senior secured revolving credit facility and new senior secured term loan

All other ratings, including the Ba1 corporate family rating, the Ba1-PD probability of default rating, Baa2 senior secured loan ratings and the Ba2 ratings on the existing senior unsecured notes remain unchanged, the agency said.

Allison Transmission plans to amend and extend its senior secured revolving credit facility and senior secured term loan. The company wants to increase the senior secured revolving credit facility to $750 million and extend the expiration date to 2029. Allison Transmission is also seeking to extend the senior secured term loan to 2031. Concurrent with the transaction, the company plans to repay $100 million on the term loan, which as of Dec. 31, had an outstanding balance of $620 million.

The outlook is stable.

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