Moody's upgrades Amsted

Moody's Investors Service said it upgraded Amsted Industries Inc.'s corporate family rating to Ba2 from Ba3 and probability of default rating to Ba2-PD from Ba3-PD, along with its senior unsecured regular bond/debenture to Ba3 (LGD 4, 62%) from B1 (LGD 4, 63%).

The agency also said it revised the outlook to stable from positive.

The upgrades reflect expectations for continued strong operating profitability on a stable revenue base, resulting from strong overall demand for its products in all segments, Moody's said.

This will allow the company to operate with only modest amounts of debt while generating levels of free cash flow to cover Employee Stock Ownership Plan (ESOP) redemption payments, which are likely to remain elevated over the next few years, the agency said.

The ratings also consider debt levels that are modest and manageable, which is important considering the cyclical nature of the company's business, Moody's said.

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