Moody's ups Shiloh ratings

Moody's Investors Service said it upgraded the ratings of Shiloh Industries Inc., including the $260 million guaranteed senior secured revolver due April 2004 to Caa1 from Caa2 and the senior unsecured issuer rating to Caa2 from Caa3.

Moody's said the action was in acknowledgment of Shiloh's progress with regard to operating efficiency and cash flow performance, and the corresponding enhancement of the company's credit protection measures over the past eighteen months.

The outlook remains negative due to liquidity concerns.

Moody's said the rating upgrades reflect Shiloh's improved operating margins and credit metrics, which incorporate the company's achievement of more than $100 million of debt reduction over the past 18 months.

The enhancements to Shiloh's performance coincide with the company's changeover to its current chief executive officer. Shiloh has been doing a more effective job at identifying best practices to lower Shiloh's fixed cost structure, working capital, and capital investment requirements - and thereby lower the company's break-even point for revenues.

For the last 12 months ended July 31, Shiloh's total debt to EBITDA declined to 4.5x, from 7.3x in the fiscal year ended Nov. 30, 2002.

© 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.