Moody's upgrades Edwards

Moody's Investors Service said it upgraded the corporate family rating of the Edwards Group Ltd. to B1 from B2 and the probability-of-default rating to B1 from B2, the rating on the company's superpriority revolver to Ba1 from Ba2 and the rating on the first-lien term loan to B2 from B3.

The outlook remains stable.

The action comes on the back of the announcement by the company in May that it had raised a net $87 million on the U.S. stock markets as part of an initial public offering, according to the agency.

Proceeds will go toward reducing the outstanding amounts under Edwards' first-lien term loan, which will help further improve the company's metrics with leverage falling toward 3x by the end of 2012, the agency said.

Edwards' B1 corporate family rating is supported by the company's leading competitive positions, its continued initiative and success in innovating products and reducing costs, and the improvement of Edwards' credit metrics with an adjusted debt-to-EBITDA ratio of 3.6x in fiscal 2011 vs. 4.2x in fiscal 2010, on the back of general economic recovery in its customer markets, the agency said.

Edwards' ratings remain constrained by the degree of reliance on a single product type and dependence on highly cyclical industries in particular for the company's semiconductor and emerging technology segments, Fitch said.

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