Moody's rates Champion Home Builders loan B1

Moody's Investors Service said it assigned a B1 rating to Champion Home Builders Co.'s new $200 million credit facilities and affirmed the corporate family rating of Champion Enterprises Inc. at B1 as well as the B3 rating on the company's $89 million senior notes.

Additionally, Moody's said it changed Champion's outlook to positive from stable.

The agency noted the ratings and change in outlook reflect the company's reduced leverage, improvement in free cash flow and operating margins as well as Champion's recent strong revenue growth due to an improving product mix and favorable pricing.

Moody's has also affirmed the company's speculative-grade liquidity rating at SGL-2.

The B1 rating on the new credit facilities is affected by the company's relatively high leverage and driven by the uncertainty in the company's ability to pass on higher input prices to customers in an increasing interest rate environment, Moody's noted.

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