Fitch rates Hillenbrand, loans & notes BBB-

Fitch Ratings said it assigned an initial issuer default rating of BBB- to Hillenbrand, Inc.

In addition, the agency assigned a rating of BBB- to the company's senior unsecured credit facility (revolver and term loan) and a BBB- rating to its senior unsecured notes.

The outlook is stable.

About $595 million of outstanding debt as of June 30is covered by these ratings.

Fitch said the ratings incorporate Hillenbrand’s financial flexibility, consistently positive free cash flow, conservative financial strategy and broad customer and geographic base. Significant aftermarket revenue in the Process Equipment Group generates attractive margins and mitigates the segment's cyclical end-markets and exposure to long-term projects.

The Batesville segment provides additional stability, generating consistently strong EBITDA margins of over 25% and more than half of Hillenbrand's free cash flow, the agency said.

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