Moody's lifts Oshkosh view to positive

Moody's Investors Service said it affirmed Oshkosh Corp.'s Ba1 corporate family rating, Ba1-PD probability of default rating, Ba1 senior unsecured rating and SGL-1 speculative grade liquidity rating.

The outlook also was revised to positive from stable.

The positive outlook reflects expectations for steady profit growth and cash flow generation that would demonstrate stability of the company's consolidated operations, even with volatility in individual segments, Moody's said.

The positive outlook also reflects an expectation that Oshkosh will sustain a debt-to-EBITDA of less than 2.5x and limit share repurchases below free cash flow, highlighting a commitment to maintaining a conservative capital structure, the agency said.

The ratings reflect the company's considerable scale as revenue should exceed $8 billion for fiscal 2019 with good activity across the segments, Moody's said.

The agency said it believes event risk from large debt-funded acquisitions is modest as the company is unlikely to take on a transformational transaction.

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