Moody's upgrades Ozburn-Hessey

Moody's Investors Service said it upgraded Ozburn-Hessey Holding Co., LLC’s corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD and senior secured credit facilities to B1 (LGD3) from B2 (LGD3). The outlook is stable.

The agency said the upgrade is based on the steady improvement in the company's credit metrics primarily attributable to improved revenue and operating income.

The B2 corporate family rating reflects the company's high leverage and moderate size in the highly fragmented, competitive and cyclical third-party logistics sector, Moody’s said.

However, the agency said the ratings also consider that the company derives benefits from its asset-light business model and resulting ability to vary costs in line with changing demand.

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