Moody's lifts Garrett Motion

Moody's Investors Service said it upgraded the corporate family rating of Garrett Motion Inc. to Ba2 from Ba3 and changed the company's probability of default rating to Ba2-PD from Ba3-PD.

Concurrently, Moody's affirmed the Ba2 ratings on the guaranteed senior secured bank credit facilities of Garrett's wholly owned subsidiaries Garrett Motion Sarl and Garrett LX I Sarl.

The outlook on Garrett, Garrett Motion Sarl and Garrett LX I Sarl's ratings is stable.

“The upgrade of Garrett's CFR reflects the de-leveraging stemming from the early redemption of $411 million subordinated debt instruments and the good operating performance with high cash generation in 2021,” said Matthias Heck, a Moody's vice president - senior credit officer and lead analyst for Garrett, in a news release.

“The stable outlook reflects the expectation of a continued recovery in global light vehicle sales in 2022 and continued positive FCF generation, which will leave leverage below 3x on a sustained basis.”

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