Moody’s upgrades RBS

Moody's Investors Service said it upgraded RBS Global, Inc.'s (Rexnord) corporate family rating and probability of default rating to B1 and B1-PD from B2 and B2-PD, respectively.

Concurrently, the agency upgraded the senior secured facilities to Ba3 from B1.

The company's speculative grade liquidity rating remains at SGL-1.

The outlook is stable.

Moody’s said the upgrade reflects the improvement in Rexnord's leverage to 5.3x for the LTM period ended in June from 6.2x for 2016 and the expectation for further deleveraging in the coming year.

“The company has voluntarily paid down debt and we anticipate further debt repayments over the next twelve months,” the agency said in a news release.

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