Moody’s: Whirlpool Finance notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to the €500 million senior unsecured notes issuance of Whirlpool Finance Luxembourg Sarl.

Proceeds are expected to be used primarily for general corporate purposes, including the repayment of euro commercial paper borrowings.

The notes will be guaranteed by parent Whirlpool Corp., making them pari passu with existing unsecured obligations of Whirlpool Corp.

Moody’s said the Baa1 senior unsecured rating reflects Whirlpool’s significant scale with revenue of approximately $21 billion, considerable geographic diversification, strong brand names and good liquidity.

Credit metrics are solid with retained cash flow/net debt around 25% and interest coverage over 7 times.

The agency expects both metrics to improve over the next two years with retained cash flow/net debt nearing 40% in 2017.

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