Moody’s views Knife River positively

Moody's Ratings said it changed the outlook for Knife River Corp. to positive from stable and affirmed its Ba2 corporate family rating, Ba2-PD probability of default rating and the Ba3 rating on the company's existing senior unsecured notes. Moody's also upgraded Knife River's speculative grade liquidity rating to SGL-1 from SGL-2.

"Knife River has performed well since becoming a stand-alone, publicly traded company in mid-2023," according to Peter Doyle, a Moody's vice president and senior analyst, in a press release. "An ongoing track record as an independent company with conservative financial policies such as debt leverage below 2x could support further upward rating momentum."

However, counterbalancing the company’s credit strengths is the very cyclical U.S. construction industry, which is where the company earns most of its revenue, the agency said.

Moody’s said it expects Knife River to maintain very liquidity by generating at least $125 million in free cash flow yearly for the next two years.

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