Moody's ups Libbey Glass notes

Moody's Investors Service said it upgraded Libbey Glass, Inc.'s corporate family rating to B1 from B2 and probability of default rating to B1-PD from B2-PD.

Concurrently, Moody's upgraded the company's $405 million senior secured notes to B1 from B2 and affirmed the speculative grade liquidity rating at SGL-2.

The outlook was revised to stable from positive.

Moody's said the upgrade primarily reflects its expectation for continued improvement in the company's credit metrics. Debt to EBITDA is projected to decline to below 3.5 times and EBITA to interest expense to increases to over 3 times by the end of 2014.

Libbey Glass' focus on EBITDA margin expansion via maximizing cost reductions and operating efficiencies while using its cash flow to strengthen its balance sheet by reducing indebtedness will be key to achieving the quoted metrics.

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