Moody’s ups Axalta, loans, notes

Moody's Investors Service said it upgraded Axalta Coating Systems Ltd.’s corporate family rating to B1 from B2.

In addition, the agency upgraded the senior secured first-lien revolver and term loans of Axalta's wholly owned subsidiaries – Axalta Coatings Systems U.S. Holdings Inc. and Axalta Coatings Systems Dutch Holdings BBV – to Ba3 from B1 and the senior unsecured notes of these entities to B3 from Caa1.

The outlook is positive.

These actions reflect the improved profitability and credit profile over the roughly two-year period since Axalta was acquired by an affiliate of Carlyle from DuPont in February 2013.

"Transition-related initiatives, cost reduction efforts, select investments and strategic refocus have facilitated recent modest volume growth, margin improvement, positive free cash flow and lower leverage, – all of which have strengthened credit metrics since the acquisition to a level more commensurate with a B1 corporate family rating," Moody's vice president and senior analyst Joseph Princiotta said in a news release.

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