Moody’s raises Masonite to Ba3, notes to B1

Moody's Investors Service said it upgraded Masonite International Corp.’s corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD and senior unsecured notes to B1 from B2, and affirmed its speculative-grade liquidity rating of SGL-2.

The outlook is stable.

Moody’s said the upgrade of the corporate family rating to Ba3 is reflective of the Masonite's improved cost structure, significant projected free cash flow generation in excess of $100 million over the next year, and EBITDA growth that has enabled the company to reduce debt leverage substantially.

The agency anticipates debt to EBITDA to decline to close to 2 times over the next 18 months from 2.8 times for the fiscal year end 2015.

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