Moody’s lifts Ashtead notes, rates notes Ba3

Moody's Investors Service said it affirmed the Ba2 corporate family rating and Ba2-PD probability of default rating of Ashtead Group plc.

The agency also upgraded the rating on the $900 million 6˝% second-priority senior secured notes due 2022 issued by Ashtead Capital, Inc. to Ba3 from B1.

Concurrently, Moody's assigned a provisional Ba3 rating to the new $400 million second-priority senior secured notes due 2024 issued by Ashtead Capital.

The proceeds will be used to reduce drawings under the $2 billion asset-based facility.

The outlooks remain stable.

Moody’s said the strong performance of Ashtead, driven by a larger fleet, higher use levels and improving yields as key markets continue to recover, has resulted in the agency’s adjusted leverage decreasing to 1.9 times at financial year ended April 30, 2014, down from 2.5 times at year-end 2012. Over the same period, Moody's adjusted EBIT to interest increased to 6.9 times from 3 times.

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