Moody’s upgrades Glasstank CFR, notes to B3

Moody's Investors Service said it upgraded Glasstank BV’s corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD.

Concurrently, the agency upgraded the rating on the €185 million senior secured notes due May 2019 to B3 from Caa1.

The outlook is stable.

The upgrade to B3 reflects the significant progress the company has made upgrading its manufacturing plants to improve its operating performance, which Moody's expects will result in a build-up of cash and gradually improving credit metrics in the run up to 2019 when the senior secured notes are due.

The agency expects EBITDA to increase significantly over the next 12 to 18 months reducing Moody's adjusted leverage toward 4 times by the end of fiscal year 2016.

Increasing positive free cash flow will reduce the company's reliance on its short-term local facilities.

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