Moody’s gives Baa3 to Ashtead notes

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

Ashtead Group’s Baa3 long-term issuer rating and the Baa3 rating on its outstanding backed senior unsecured notes sold by Ashtead Capital remain unaffected, the agency said.

Ashtead will use the proceeds to partially repay the company's $4.5 billion asset-based lending revolver 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 backed senior unsecured 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 statement.

The outlook is stable.

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