S&P upgrades Ashtead

Standard & Poor's said it raised the long-term corporate credit rating on Ashtead Group plc to BB from BB-.

The agency also said it raised the rating on the group's second-lien debt to BB- from B+. The recovery rating is unchanged at 5, indicating 10% to 30% expected default recovery.

The outlook is stable.

The upgrade reflects the improvement in Ashtead's financial ratios thanks to solid operating earnings and cash flow generation on the back of favorable conditions in the U.S. rental equipment market, S&P said.

The improvement also is the result of Ashtead's ability to increase its earnings in the United Kingdom despite the weak state of the construction industry, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.