Moody's ups Pall debt to Baa1

Moody's Investors Service said it upgraded the senior unsecured debt rating of Pall Corp. to Baa1 from Baa2 to reflect the agency's expectation that Pall will benefit from its leading market position in the growing global filtration industry, resulting in strong organic growth. In addition, Pall's continued focus on improving its cost structure and cash flow while maintaining a conservative financial profile and strong liquidity support the upward ratings movement.

This concludes the review for upgrade that began on Aug. 10, and the outlook is stable.

The agency said Pall's Baa1 rating benefits from the company's regional and product diversification, new product innovations, expansion into low-cost growth markets and the expectation that cost reductions will benefit the company's profitability and cash flow generation once the initial outlays are completed. The ratings also acknowledges Pall's conservative financial policies, which have resulted in cash balances exceeding $300 million at July 31, manageable debt maturities and moderate use of its $500 million revolving credit facility.

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