Moody’s lifts Royal Holdings to B2

Moody's Investors Service said it upgraded the corporate family rating of Royal Holdings, Inc., parent company of Royal Adhesives and Sealants, to B2 from B3.

The agency also affirmed the B1 ratings on the company's senior secured bank debt, including a proposed $40 million add-on to fund a small strategic acquisition, and upgraded to Caa1 from Caa2 the company's second-lien senior secured bank debt.

The outlook is stable.

"The upgrade reflects our expectation that Royal's adjusted financial leverage will be sustained well below levels seen at the initial rating assignment and reduced integration risk following significant progress on the ADCO transaction," Ben Nelson, Moody's assistant vice president and lead analyst for Royal Holdings, said in a news release.

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