Moody’s upgrades Fender to B1

Moody's Investors Service said it upgraded Fender Musical Instruments Corp.’s corporate family rating to B1 from B2 due to much improved credit metrics and the expectation that the improvements will be sustained.

The outlook is stable.

"Fender has paid down about $40 million of debt in the last year with free cash flow bringing total pay down to almost $75 million for the last two years," Moody’s senior credit officer Kevin Cassidy said in a news release.

“This is in spite of EBITDA not materially changing. The debt reduction has resulted in almost a full turn of leverage reduction with debt/EBITDA now around 2.5 times."

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