Moody’s upgrades Keurig

Moody's Investors Service said it upgraded ratings of Keurig Green Mountain, Inc., including its corporate family rating to Ba2 from Ba3, probability of default rating to Ba3-PD from B1-PD and senior secured bank debt ratings to Ba2 from Ba3.

The outlook is stable.

The upgrades reflect the significant improvement in profitability and cash flow that Keurig has achieved since being acquired by JAB Holdings in March 2016, Moody’s said.

At closing, financial leverage was high with a debt-to-EBITDA ratio of about 5.5x, the agency said.

Keurig has since repaid about $750 million, or 13%, of its debt and increased trailing 12-months EBITDA by about 20%, Moody’s said.

As a result, the agency said it expects Keurig will reduce and sustain leverage comfortably less than 4x in fiscal 2017 and beyond.

© 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.