Moody's lifts SiteOne

Moody's Investors Service said it upgraded SiteOne Landscape Supply Holding, LLC’s senior secured term loan to Ba2 from Ba3 and its corporate family and probability of default ratings to Ba1 from Ba2 and Ba1-PD from Ba2-PD, respectively. The agency also revised the outlook to stable from positive and raised the speculative grade liquidity rating to SGL-1 from SGL-2.

"The upgrade and stable outlook reflect SiteOne's healthy balance sheet and commitment to a conservative financial policy. Modest leverage positions the company well to operate its growth through acquisition strategy, even in more challenging times," said Justin Remsen, a Moody's assistant vice president, in a press release.

"We expect SiteOne to weather weakening near-term demand and maintain Moody's adjusted leverage under 2.5x through 2024," Remsen added.

The improved SGL rating reflects an estimate for very good liquidity with strong free cash generation exceeding $200 million per year in 2023 and 2024, the agency said.

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