Moody’s upgrades ALKU

Moody’s Investors Service said it upgraded its ratings for ALKU, LLC, including its corporate family rating to B2 from B3 and its probability of default rating to B2-PD from B3-PD. Simultaneously, Moody’s upgraded the instrument ratings on ALKU’s senior secured credit facility to B2 from B3.

“The one-notch upgrade of the CFR reflects ALKU’s improved credit profile and proven resiliency amid the coronavirus pandemic demonstrated by continued demand for its niche of consulting services,” said Andrew Macdonald, Moody’s lead analyst for AKLU, in a press release.

“During the first half of 2020, the company’s revenues grew in the low double-digit percentages and leverage improved to 4.1x from 4.8x,” MacDonald said. “Going forward, we believe that the company’s leverage will remain sustained below our previously indicated upgrade factor of 5x and expect positive free cash flow to support good liquidity.”

The outlook is stable.

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