Moody's: Ansell outlook positive

Moody's Investors Service said it revised the outlook on Ansell Ltd.'s, and its supported subsidiaries', Ba2 unsecured senior ratings to positive from stable.

Ratings affected include Ansell Ltd.'s issuer rating of Ba2, senior unsecured rating of Ba2, and senior subordinated rating of Ba3; Pacific Dunlop USA Inc.-backed senior unsecured rating of Ba2, and Pacific Dunlop Holdings Inc.-backed senior unsecured rating of Ba2.

The change in outlook is driven by sustained improvements in Ansell's operating profile with its continued conservative approach and as demonstrated in its stronger credit metrics.

Moody's said the rating reflects solid brand awareness and long-term relationships with customers, which underpin revenues and operating margins; the ability to meet the evolving needs of customers with the introduction of new products; and management's commitment to sustaining a sound financial profile.

Moody's noted the rating also considers the fragmented nature of Ansell's markets and which restricts the company's pricing power and ability to grow revenue; its lack of business size and diversity; and exposure to currency (primarily euro) and commodity (latex) price risk.

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