Moody's rates Ashtead Capital notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Ashtead Capital, Inc.'s planned benchmark-sized dollar-denominated backed senior unsecured notes. The issuer is a wholly owned subsidiary of Ashtead Group plc.

The agency also affirmed the Baa3 long-term issuer rating of Ashtead Group plc and the Baa3 rating on existing backed senior unsecured notes issued by Ashtead Capital.

The proceeds will be used to partially repay the company's asset-based lending revolving credit facility drawings.

“The transaction is credit neutral. The interest rate is expected to be above the company's current average borrowing rate; however, the company's cash flow generation is sufficient to absorb it without material deterioration to the credit metrics. Meanwhile, the proposed new notes extend the company's maturity profile and rebalance the capital structure between senior secured debt (leases and RCF drawings) and unsecured debt,” Moody’s said in a press release.

The outlook remains stable.

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