Moody's gives American Axle notes B2

Moody's Investors Service said it assigned a B2 to American Axle & Manufacturing, Inc.'s planned $600 million senior unsecured notes offering. The agency concurrently upgraded the senior secured debt rating to Ba1 from Ba2.

“The upgrade of the senior secured rating reflects the increased prospects of recovery at the senior secured level given the reduction in the percentage of secured debt in the debt capital structure following accelerated term loan repayments in the first half of 2021,” Moody’s said in a press release.

Moody's also affirmed the corporate family rating at B1, the probability of default rating at B1-PD and the senior unsecured rating at B2. The speculative grade liquidity rating remains SGL-2.

The proceeds will be used to repay the 2025 senior unsecured notes and is therefore leverage neutral, the agency said.

The outlook is positive.

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