Moody’s boosts ChampionX

Moody's Investors Service said it upgraded ChampionX Corp.'s corporate family rating to Ba1 from Ba2 and senior secured debt ratings to Ba1 from Ba2. The speculative grade liquidity rating remains unchanged at SGL-1, but the outlook was changed to stable from positive.

“The upgrade of ChampionX's ratings reflects growing EBITDA, low financial leverage and strong free cash flow generation. The company is following a well-balanced approach to increasing shareholder returns while maintaining a very strong credit profile that is resilient to the inherent cyclicality of its business,” Moody’s said in a press release. Champion’s next major debt maturity is 2027.

Moody’s noted that at June 30, ChampionX had $263 million of cash and an undrawn $700 million revolver due in 2027.

The agency added, “While Moody's does not expect meaningful EBITDA contribution in the near-term, ChampionX is investing in products that help its customers reduce emissions, including the company's solutions for customers to monitor methane emissions in real-time.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.