Moody's ups Advanced Drainage

Moody's Investors Service said it upgraded Advanced Drainage Systems, Inc.'s corporate family rating to Ba1 from Ba2 and probability of default rating to Ba1-PD from Ba2-PD. Moody's also raised the ratings on the company’s secured bank credit facility to Baa3 from Ba1 and its senior unsecured notes to Ba2 from B1. The company's speculative grade liquidity rating remains SGL-1.

“The upgrade of ADS' CFR to Ba1 from Ba2 reflects Moody's expectation that ADS will benefit from end-market dynamics that support growth while maintaining robust operating performance. Additionally, ADS has paid down nearly $300 million in debt from cash flow since acquiring Infiltrator Water Technologies LLC (Infiltrator) in mid-2019. These factors and ongoing conservative financial policies, including maintaining low leverage over the next two years, support the ratings upgrade,” the agency said in a press release.

The outlook is stable.

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