Moody’s upgrades Harman to Baa2

Moody's Investors Service said it upgraded Harman International Industries, Inc.'s senior unsecured rating to Baa2 following the March 10 announcement that Samsung Electronics Co., Ltd. completed its acquisition of Harman.

This action concludes the review for upgrade initiated on Nov. 15.

The agency also withdrew the rating on the senior unsecured bank credit facility, which was repaid and terminated.

Moody’s said the Baa2 senior unsecured rating reflects Harman's leading market position in its primary segment (Connected Car) and in branded car audio (part of the Lifestyle Audio segment), strong market position and brands across its operating segments, and strong and consistent free cash flow and liquidity.

The agency expects Harman to grow its backlog of awarded business and generate consistent EBITDA margins (Moody's adjusted) in the upper single-digits to low double-digits over time.

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