Moody's ups Hexcel

Moody's Investors Service said it upgraded the corporate family and probability of default ratings of Hexcel Corp. to Ba2 from Ba3 and revised the rating on its $75 million of senior subordinated global notes B1 (LGD6, 93% from LGD5, 70%).

Moody's also assigned a first-time speculative-grade liquidity rating of SGL-3, indicating a near-term adequate liquidity profile.

The outlook is stable.

The upgrade reflects Hexcel's strong improvement to operating performance over the past year, the agency said.

The B1 rating for Hexcel's senior subordinated notes is unchanged, reflecting the changes to Hexcel's capital structure with the recent redemption of $150 million of the subordinated notes partly funded with borrowings under the bank revolver.

Because the redemption resulted in less subordinated debt and more senior secured debt in the capital structure, the expected recovery for the subordinated notes is now lower, notwithstanding Hexcel's lower default probability, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.