S&P upgrades Ashtead

S&P said it upgraded Ashtead Group's long-term issuer credit rating to BBB- from BB+ and affirmed the BBB- ratings on the second priority bonds.

Given the favorable fundamentals in the U.S. equipment rental market, the agency said it expects Ashtead Group's performance to remain resilient, supported by conservative financial policies.

The upgrade also incorporates a view that Ashtead is well-positioned to benefit from growth prospects in its U.S. market, S&P said.

The stable outlook reflects an expectation that Ashtead will cement its position in the U.S. market and post robust operating performance over the next 24 months, the agency said.

S&P also said it anticipates that Ashtead will balance the level of capital investments with cash flow generation and maintain stable EBITDA margins with leverage of less than 2x.

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