Moody’s assigns Darling revolver Ba1

Moody’s Investors Service said it assigned a Ba1 rating to Darling Ingredients Inc.’s extended $1 billion secured revolver due 2025 and withdrew the previous Ba1 rating on the revolver due 2021.

Moody’s also changed the outlook to positive from stable. Simultaneously, Moody’s affirmed Darling’s ratings, including its corporate family rating at Ba2, probability of default rating at Ba2-PD, senior secured credit facilities at Ba1, and the senior unsecured notes at Ba3.

Moody’s upgraded Darling’s speculative grade liquidity rating to SGL-1 from SGL-2.

“The outlook change to positive reflects Darling’s focus on reducing debt and leverage, and the increasing asset value of the company’s Diamond Green Diesel joint venture (DGD) with Valero Energy Corp. Moody’s expects Darling’s financial leverage (Moody’s adjusted incorporating cash distributions from DGD into EBITDA) to fall below 3.5x in the next 12-18 months, driven primarily by EBITDA growth in its core business and debt repayment from free cash flow,” the agency said in a press release.

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