Moody’s upgrades Armacell, loans

Moody's Investors Service said it upgraded the corporate family rating to B2 from B3 and the probability of default rating to B2-PD from B3-PD of Ultima Intermediate Sarl the intermediate holding company of Armacell.

Concurrently, the agency upgraded the ratings on the group's first-lien credit facilities to B1 (LGD3-36%) from B2 (LGD3-34%) and the rating on the group's second-lien term loan to Caa1 (LGD5-84%) from Caa2 (LGD5-86%).

The outlook remains stable.

Moody’s said the upgrade reflects Armacell's sustained robust operating and financial performance over the last 12 months translating into Moody's adjusted credit metrics, which position the group appropriately in the B2 rating category. As of June 30, Armacell's profitability on a 12 months trailing basis improved to an adjusted EBITA margin of 12.1% (11.3% in 2012), while adjusted leverage reduced to around 6.3 times debt/EBITDA, which is better than Moody's had expected at rating initiation in June last year.

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