Moody's rates Chart B1

Moody's Investors Service said it assigned ratings to Chart Industries, Inc., including a B1 corporate family rating, Ba3 senior secured bank facility rating, Ba3 senior secured note rating and B3 senior unsecured note rating. The agency also assigned an SGL-3 speculative grade liquidity rating. The outlook is stable.

The ratings follow Chart’s announcement it plans to buy Granite US Holdings Corp. (Howden) for $4.4 billion following the company's announcement that it intends on acquiring Granite US Holdings Corporation (dba

"The assignment of a B1 corporate family rating reflects Chart's high pro forma leverage of about 7.8x at Sept. 30, 2022 (excluding synergies, or 5.9x with synergies) and integration risks as the company more than doubles its size in terms of revenue and EBITDA with the acquisition of Howden," stated Peter Trombetta, a Moody's vice president and senior analyst, in a press release.

The acquisition is expected to close in the first half of 2023 and Moody’s said it forecasts Chart’s debt/EBITDA improving to about 5x after the first full year of operations.

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