Moody's revises Axalta view to positive

Moody's Investors Service said it changed the outlook to positive from stable and affirmed Axalta Coating Systems Ltd.'s Ba3 corporate family and Ba3-PD probability of default ratings.

The agency also affirmed the Ba1 ratings on the senior secured first-lien revolver and term loans of Axalta's wholly owned subsidiaries–Axalta Coating Systems Dutch Holding B BV and co-borrower Axalta Coating Systems U.S. Holdings Inc., and the B1 ratings on the senior unsecured notes issued at Axalta Coating Systems LLC and Axalta Coating Systems Dutch. The speculative grade liquidity rating remains SGL-1.

"Axalta's credit metrics should improve significantly in 2022. While we expect some margin compression driven by supply chain issues in the second half of 2021, we expect continued strong cash flows, and the company's operating performance in 2020 and 2021 demonstrated the resilience of its business model," said Ben Nelson, a Moody's vice president, senior credit officer and lead analyst for Axalta.

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