Moody’s ups Greif view to stable

Moody's Investors Service said it affirmed Greif, Inc.’s Ba2 corporate family rating and revised the outlook to stable from negative.

Moody’s said the affirmation and outlook revision reflect Greif's improvement in operating performance due to various cost saving initiatives and divestiture of lower margin businesses and an expectation of further improvements.

"Going forward, Greif is expected to further improve credit metrics due to completed and ongoing cost saving initiatives, a reduction in capex to a level in line with depreciation, and some new business initiatives,” Moody's vice president and senior analyst Ed Schmidt said in a news release.

The company is also expected to dedicate all free cash flow to debt reduction and maintain good liquidity, the agency added.

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