Moody's upgrades Hyva

Moody's Investors Service said it upgraded Hyva Global BV's corporate family rating to B2 from B3, upgraded its probability of default rating to B2-PD from B3-PD and affirmed the B3 rating on Hyva's $375 million of senior secured notes due 2016. The outlook is stable.

The agency said the upgrade considers the company's improving performance evidenced by its 2013 results. This was driven by its cost restructuring program launched in 2012 and achieved despite a weak economic environment, Moody's said. Consequently, Hyva's financial metrics at the end of fiscal year 2013 improved, with adjusted leverage decreasing to 5.2 times from 6.6 times in December 2012.

Hyva's ratings positively reflect the company's international presence, leadership in core markets and flexible cost base, with low operating leverage and capex requirements, Moody's said.

The ratings also reflect Hyva's modest scale, exposure to the inherent cyclicality of the commercial vehicle and construction equipment industry, concentration of risk and still relatively high leverage of 5.2 times in December 2013, the agency said.

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