| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers O > Headlines for Omnova Solutions Inc. > News item |
Moody's lifts Omnova
Moody's Investors Service said it upgraded Omnova Solutions Inc.'s corporate family rating to B1 from B2 and the rating on its term loan to B1 (LGD3, 42%) from B2 (LGD4, 57%).
The rating outlook is stable.
The upgrade reflects the improvement in Omnova's operations and incorporates expectations that the company will take on debt to fund the recently announced Eliokem acquisition, according to the agency.
Moody's said the upgrade is supported by the improvement in operating performance and liquidity over the past 12 to 18 months.
The upgrade is supported by the company's improved financial performance and liquidity that gives it the ability to absorb the acquisition debt, the agency said.
The all-debt financing of the acquisition is expected to leave a reasonable level of leverage for the B1 corporate family rating with a debt-to-EBITDA ratio of about 4.1x for the 12 months ended May 31 on a pro forma basis.
© 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.