Moody's ups OM Group to B1

Moody's Investors Service said it upgraded OM Group, Inc.'s corporate family rating and its probability-of-default rating to B1 from B2.

This concludes the review for upgrade begun in November, and the outlook is stable.

The rating change reflects the company's efforts to lower its debt after it repaid all its outstanding loans with part of the sale of its nickel business, Moody's said.

The company also faces good market conditions for its remaining businesses and has a strong balance sheet, the agency said. As of March 31, the company reported about $2 million in debt versus $327 million in cash. The debt includes Moody's adjustments of about $40 million for operating leases and underfunded pension liabilities.

The stable outlook represents current market conditions and expectations that the company will continue to generate cash flow consistent with the ratings. OM group's future acquisition strategy might affect its ratings.

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