Moody’s raises Atkore International

Moody’s Investors Service said it upgraded Atkore International, Inc.’s corporate family rating to Ba3 from B1, its probability of default rating to Ba3-PD from B1-PD, and the first-lien term loan rating to Ba3 from B2. Atkore’s speculative grade liquidity rating of SGL-2 remains unchanged.

“The upgrade of Atkore’s ratings reflects the significant improvement in the company’s operating performance and credit metrics over the past two fiscal years and the expectation they will improve further in the near term. It also reflects the sustainability of its operating performance at a higher level than the past due to its strengthened competitive position and focus on margin and productivity improvements,” said Michael Corelli, Moody’s vice president, senior credit officer and lead analyst for Atkore, in a press release.

Atkore’s Ba3 corporate family rating is supported by its moderate leverage, ample interest coverage, large market share in key products, attractive position in certain end markets, its enhanced focus on core product categories, pricing discipline and operational efficiencies and its good liquidity profile. The rating also benefits from the exit of Clayton, Dubilier & Rice, LLC as a controlling shareholder since it sold out its equity position in fiscal 2018 through the sale of shares to the company and two secondary offerings of common stock, 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.