Moody's lifts Invacare debt

Moody's Investors Service said it affirmed the B1 corporate family rating and probability of default ratings of Invacare Corp. as well as the speculative grade liquidity rating of SGL-1. Following the repayment of Invacare's term loan, Moody's said it also upgraded the ratings of the senior secured revolver to Ba1 from Ba2 and the rating on the 9¾% senior notes due 2015 to B1 from B2. The B3 rating on the senior subordinated convertible notes due 2027 is affirmed.

The outlook is revised to positive from stable.

The change in the outlook to positive from stable reflects the company's considerable debt repayment, proven success with restructuring and cost-cutting initiatives and significant improvement in credit metrics over the last year, Moody's said.

The positive outlook also reflects a view that Invacare is preparing itself well to manage expected reimbursement pressures by reducing leverage and interest expense and continuing to pursue cost savings opportunities, the agency said.

The company's financial leverage, interest coverage ratios and cash flow generation relative to debt are strong for the rating category, Moody's added.

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