Moody's affirms Oshkosh

Moody's Investors Service said it affirmed Oshkosh Corp.'s Ba3 corporate family and probability of default ratings, along with the Ba2 first-lien instrument ratings on its senior secured term loan A and revolving credit facility.

The outlook is stable.

The upgrade reflects the reduction in the proportion of secured facilities in the capital structure due to the reduction of outstanding borrowings under the senior secured revolving credit facility and term loan, Moody's said.

The company's speculative-grade liquidity rating was lowered to SGL-2 from SGL-1, reflecting an expectation of a good, but weaker, liquidity profile due to decreased free cash flow generation and lower cash balances over the near-term, Moody's said.

The ratings consider a view that the company's pay down of debt over the last couple of years strengthened its balance sheet, providing flexibility to accommodate the contraction of its defense business and ongoing weakness in the fire and emergency and commercial segments, the agency said.

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