Moody's ups J.M. Huber

Moody's Investors Service said it upgraded J.M. Huber Corp.'s corporate family rating to Ba2 from B1 and moved the outlook to stable from positive.

Moody's also upgraded the company's unsecured notes due 2019 to Ba3 from B2.

The two-notch upgrade reflects significantly improved earnings and cash flow generation in Huber's businesses, particularly in the Engineered Woods division.

"The substantial increase in Engineered Wood margins over the past year may not be sustainable over the long term, but it should allow the company to generate extremely strong financial metrics and enable the company to accelerate debt reduction over the next two to three years, given the anticipated improvement in US housing starts," Moody's vice president Bill Reed said in a news release.

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