S&P revises Allegion to positive

Standard & Poor's said it revised its rating outlook on Allegion plc to positive from stable.

The agency also affirmed its BB+ corporate credit rating on the company. It also affirmed the BBB issue-level rating on the company's recently amended and extended $1,475,000,000 secured bank facilities, consisting of a $500 million five-year revolving credit facility and a $975 million five-year term loan A. Both facilities have a 1 recovery rating, indicating very high recovery (90% to 100%) in the event of a default.

At the same time, S&P affirmed its BB+ issue-level rating on the company's $300 million senior unsecured notes due in 2021 with a recovery rating of 3, indicating meaningful recovery (50% to 70%) in the event of a default.

Allegion US Holding Co. is the borrower under the bank facility and the issuer of the senior unsecured notes.

"Our positive outlook reflects the potential for an upgrade to BBB- if Allegion maintains leverage in the intermediate range over the next year while further establishing a track record of a prudent financial policy as it relates to acquisitions and shareholder returns. Incorporated in our outlook is our expectation that Allegion will maintain its above-average profit margins and consistent earnings," S&P credit analyst Thomas Nadramia said in a news release.

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