S&P upgrades MHI Holdings

S&P said it upgraded its ratings for MHI Holdings LLC and its first-lien credit facility to B+ from B. The 3 recovery rating on the facility is unchanged.

“The upgrade reflects our expectation that debt to EBITDA will remain comfortably below 5x throughout our forecast. Strong demand for ship repair combined with recent cost-reduction efforts have helped revenue and earnings grow beyond our expectations following the 2019 merger. We expect modest organic growth to continue in the future, resulting in leverage below 5x even with potentially significant acquisitions or dividends,” S&P said in a press release.

The outlook is stable.

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