Moody’s changes Watco view to stable

Moody's Investors Service said it affirmed the ratings of Watco Cos., LLC, including the B1 corporate family rating, the B1-PD probability of default rating and the B3 rating of the $400 million senior unsecured notes due 2023.

The outlook was changed to stable from negative.

The agency said the stable outlook is predicated on an expectation that revenues from existing operations continue to grow amid favorable economic conditions, and that Watco pursues a balanced funding policy for capital expenditures and acquisitions such that debt/EBITDA is maintained at less than 5.5 times.

The affirmation takes into account Watco's diversified revenue base comprising rail transportation services, port and terminal operations, railcar maintenance and repair services and a growing logistics business, Moody’s said.

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