Moody's raises Atlas Copco

Moody's Investors Service said it upgraded Atlas Copco AB's long-term senior unsecured instrument rating and long-term senior unsecured program rating to A1 from A2 and to (P)A1 from (P)A2, respectively. The outlook has changed to stable from positive.

"The upgrade to A1 from A2 reflects Atlas Copco's sustained operating performance and leverage improvements, supported by its leading market positions and global footprint diversity," said Daniel Harlid, Moody's vice president, senior analyst and lead analyst for Atlas Copco, in a statement.

"The rating action further considers Atlas Copco's strong business profile and disciplined financial policy, which should support a solid positioning in the A1 rating category over the medium term," Harlid added.

The stable outlook mirrors the view that Atlas Copco will keep a conservative capital structure, as reflected by Moody's adjusted leverage well below 1.5x debt/EBITDA and solid operating performance, with a Moody's-adjusted EBITA margin above 20%, the agency said.

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