Moody’s lifts Axalta

Moody's Investors Service said it upgraded the corporate family rating and probability of default rating of Axalta Coating Systems Ltd. to Ba2 and Ba2-PD, respectively, from Ba3 and Ba3-PD. Additionally, the agency raised the company's dollar-denominated senior unsecured notes issued at Axalta Coating Systems, LLC and Axalta Coating Systems Dutch Holding BBV to Ba3 from B1.

Moody's also affirmed the Ba1 ratings on the senior secured first-lien revolver and senior secured first-lien term loan of Axalta's wholly owned subsidiaries Axalta Coating Systems Dutch Holding, co-borrower Axalta Coating Systems U.S. Holdings Inc. Axalta's speculative grade liquidity rating remains at SGL-1. The outlook for all three issuers has been changed to stable from positive.

"From a credit perspective, 2023 was a good year for Axalta as financial performance and free cash improved, which allowed the company to repay debt and strengthen credit metrics, despite a relatively soft macroeconomic environment," said John Rogers, a senior vice president at Moody's and lead analyst for Axalta, in a press release.

The revised outlook reflects a slight improvement in credit metrics over the next 12-18 months, the agency said.

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