Moody's raises Enodis ratings

Moody's Investors Service said it upgraded the senior unsecured notes of Enodis plc to B1.

Concurrently, Moody's also upgraded the company's senior implied rating to Ba2 from Ba3, its unsecured issuer rating to B1 from B2, and the rating of the £100 million senior notes due 2012 to B1 from B2. Moody's also raised the rating of its $210 million (previously $455 million) senior secured credit facilities due 2008 at Enodis Holdings Ltd. to Ba2 from Ba3.

The outlook is positive.

Moody's said the upgrade reflects Enodis' progress in rationalizing its cost base and refocusing and deleveraging its business from both improvements in internal cash flow generation and asset disposals following the initial ratings assignment in March 2002, despite the weak operating environment.

This is evidenced by significantly improved credit metrics, with net adjusted debt to EBITDAR falling from 3.6x to 2.6x over the period, while adjusted retained cash flow to net adjusted debt has increased from 6% to 26%.

Moody's said the positive ratings outlook reflects Moody's expectation that the company's operating cash flow will continue to improve in 2004 (driven by lower debt service costs combined with a recovery in the macroeconomic environment in the United States) and that free cash flow will, in the main, be used to further reduce levels of debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.