Moody's upgrades KION to Ba2

Moody's Investors Service said it upgraded the corporate family rating of KION Group AG to Ba2 from Ba3 and its probability of default rating to Ba2-PD from B1-PD.

Concurrently, the agency upgraded the ratings of the debt instruments issued by KION Finance SA to Ba2 from Ba3.

The outlooks remain stable.

"Today's rating action primarily reflects our expectation that KION is willing and able to continue deleveraging its capital structure further, both through continued EBITDA improvement and the reduction of debt on balance sheet with free cash flows generated," Martin Fujerik, Moody's lead analyst for KION, said in a news release.

As of December, KION's net leverage stood at 1.4x, as defined and reported by KION, which translates into Moody's-adjusted gross debt/EBITDA of 3.4x, which is in line with the triggers set for an upgrade to Ba2 from Ba3.

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