Moody’s gives Hyster-Yale loan B1

Moody’s Investors Service said it gave a B1 rating on Hyster-Yale Group Inc.’s planned $225 million first-lien term loan due 2028. Moody's also upgraded the company's speculative grade liquidity rating to SGL-2 from SGL-3 and changed the outlook to positive from stable.

The agency affirmed Hyster-Yale's B2 corporate family rating and B2-PD probability of default rating.

The B1 rating on the loan, a notch higher than the CFR, reflects the loss absorption provided by other unsecured liabilities in the event of default, Moody’s said. The agency noted Hyster-Yale has a $300 million asset-based lending revolver that is senior to the planned loan.

“The positive outlook reflects Moody's expectations of gradual margin improvement through 2022 on robust sales growth. This will allow debt-to-EBITDA to return to sub-3x levels by 2022. Moody's expects no change to financial policy over this period, but modestly-sized acquisitions may occur,” the agency said in a press release.

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