Moody’s lifts Roller Bearing Co.

Moody's Investors Service said it raised Roller Bearing Co. of America Inc.'s senior unsecured notes rating to B1 from B2, its corporate family rating to Ba2 from Ba3 and the probability of default rating to Ba2-PD from Ba3-PD. The speculative grade liquidity rating was raised to SGL-1 from SGL-2.

“The ratings upgrade reflects Moody's expectations that the ongoing recovery in commercial aerospace and steady demand from defense and industrial markets will continue to strengthen RBC Bearings' credit metrics. The company has achieved meaningful deleveraging since the Dodge acquisition in 2021 through earnings growth and debt reduction which we expect will continue over the next 12-18 months.

“Moody's expects adjusted debt/EBITDA to decline comfortably below 3x and the company to generate at least $150 million in annual free cash flow by the 2024 year-end,” the agency said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.