Moody's rates Steelcase note Ba1

Moody's Investors Service said it assigned a Ba1 rating to Steelcase Inc.'s 6½% $250 million senior unsecured notes, the proceeds of which were used to refinance Steelcase's $250 million 6 3/8% notes.

Steelcase's ratings reflect its vulnerability to cyclical end-markets, particularly the financial sector; excess manufacturing overhead; lack of consistent profitability, especially in its international segment; and exposure to volatile input costs, the agency said.

The ratings also reflect the company's widely recognized brand name and reputation for quality office furnishings in an industry with considerable barriers to entry, the company's highly diversified installed customer base of major national and multinational corporations, progress in reducing its cost structure and its significant free cash flow generating capability.

© 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.