Moody’s ups MTS Systems debt, rates notes B3

Moody’s Investors Service said it assigned a B3 rating to MTS Systems Corp.'s proposed senior notes and upgraded the senior secured rating to Ba2 from B1.

At the same time, Moody's affirmed the corporate family rating at B1, the probability of default rating at B1-PD and the speculative grade liquidity rating at SGL-2.

The outlook is stable.

“The upgrade of the senior secured rating to Ba2 is based on lower expected loss in the event of default with the addition of a substantial amount of first-loss, senior unsecured debt in the capital structure,” the agency said in a news release.

“MTS' ratings reflect a meaningful presence in the global test & simulation market driven by customers' largely inelastic research and development (R&D) expenditures.”

© 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.