Moody’s lifts Generac Power

Moody's Investors Service said it upgraded all ratings of Generac Power Systems, Inc., including the corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD, speculative grade liquidity rating to SGL-1 from SGL-2 and rating on the company's $879 million term loan B facility to Ba2 from Ba3.

The outlook is stable.

“Generac's ratings upgrade reflects expectations for continuing good credit metrics, including attractive margins, and strong annual free cash flow in excess of $200 million (over 20% of Moody's adjusted debt),” the agency said in a news release.

“Generac's debt to EBITDA was about 3 times while sustaining a 17% EBITA margin for the twelve months ended March 31, 2018.”

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