Moody’s raises Orbotech, loan to Ba3

Moody's Investors Service said it upgraded Orbotech Ltd.'s corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD and the rating of the guaranteed senior secured term loan issued by Orbotech Inc. to Ba3 (LGD3) from B1 (LGD3).

The outlook is stable.

Moody’s said the upgrade of the corporate family rating reflects Orbotech's solid free cash flow (FCF) generation and strong deleveraging following the partially debt-financed acquisition of SPTS in August 2014.

The agency now expects FCF to debt to sustainably exceed 20% and adjusted debt/EBITDA to be consistently below 2.5 times. It also expects Orbotech to continue to maintain a sound liquidity profile.

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