Moody's lifts HellermannTyton

Moody's Investors Service said it upgraded HellermannTyton Alpha Sarl's corporate family rating to Ba3 and probability of default rating to Ba3-PD following the successful initial public offering of the group on the London Stock Exchange.

The agency also said it upgraded to B1 the rating on its €220 million of senior secured guaranteed notes issued by HellermannTyton Finance plc, a finance vehicle guaranteed by HellermannTyton Alpha.

The upgrade concludes a rating review that began in March, Moody's said.

HellermannTyton successfully raised about £212 million, which slightly improves leverage ratios, the agency said.

The listing of HellermannTyton also will bring the group increased financial flexibility in the future and might have a positive impact on the customer's perception of HellermannTyton's financial strength and flexibility, Moody's added.

But, the group's publicly announced dividend policy with a payout ratio of 30% to 40% of net income will reduce expected free cash flow generation to just break-even levels, the agency said.

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