Moody’s revises Site One view to positive

Moody’s Investors Service said it changed the outlook for SiteOne Landscape Supply Holding, LLC to positive from stable, affirmed the company’s B1 corporate family rating, B1-PD probability of default rating and B2 rating for its $450 million first-lien senior secured term loan due 2024. Moody’s also assigned an SGL-2 speculative grade liquidity rating for SiteOne.

The change to positive outlook from stable mirrors Moody’s expectations that over the next 12 to 18 months the company will continue strengthening its business profile, including improving its revenue scale, expanding geographic footprint and strengthening its market position nationally and locally, both through organic growth and acquisitions. This is expected to be accomplished as the company maintains conservative financial policies and operates with leverage in the 3x to 4x range (Moody’s-adjusted), improves free cash flow, and maintains operating margin stability. Over the next year, Moody’s said it expects SiteOne to benefit from stable operating trends in its residential and commercial end markets yielding organic revenue growth in the low to mid-single digits.

The assignment of SiteOne’s SGL-2 reflects Moody’s expectations of a good liquidity profile over the next 12 to 18 months, characterized by positive free cash flow, maintenance of at least 50% of revolver availability under its $375 million credit facility expiring in 2024 and no near-term maturities.

© 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.