Moody’s switches EnerSys to positive

Moody’s Investors Service said it changed its outlook for EnerSys to positive from stable and affirmed the Ba2 corporate family rating, Ba2-PD probability of default rating and Ba3 rating on the company's senior unsecured notes. SGL-1 speculative grade liquidity rating is unchanged.

“The positive outlook reflects Moody's expectation of robust free cash flow, despite higher capital expenditures and a weak macro environment. Cash flow will benefit from expected tax credits for qualifying battery products over the next several years. Moody's also expects EnerSys to maintain moderate leverage even if it undertakes debt-funded acquisitions,” the agency said in a press release.

Moody's said it forecasts EnerSys’ leverage will be below 3x over the next year, though this could rise with substantial debt-funded acquisitions.

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