Moody's upgrades Quikrete

Moody's Investors Service said it upgraded Quikrete Holdings, Inc.'s corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD and senior secured rating to Ba2 from Ba3.

The upgrade mirrors the forecast for continued improvement in Quikrete's credit profile, higher predictability in free cash flow generation and on-going solid execution, the agency said. Moody's estimates total debt to EBITDA will be 3.7x by year-end 2022.

"Over the years, Quikrete has increased scale (organically and through acquisitions), diversified its revenue mix, successfully integrated assets, improved profitability, re-invested most of its free cash flow back in the business, and limited dividend distributions to its shareholders balancing the interests of the company's creditors with the interest of its shareholders," said Emile El Nems, a Moody's vice president and senior credit officer, in a press release. "Going forward, we expect the company to remain focused on execution, pursue additional tuck-in acquisitions and remain committed to modest leverage."

The outlook is stable.

© 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.