Moody's stabilizes Ritchie Bros. outlook

Moody's Investors Service said it changed the outlook on Ritchie Bros. Auctioneers Inc. (RBA) to stable from negative. Concurrently, the agency affirmed all its RBA ratings, including its Ba2 corporate family rating, its Ba2-PD probability of default rating, its senior secured Ba1 instrument rating and its Ba3 senior unsecured instrument rating.

Additionally, Moody’s upgraded RBA's speculative grade liquidity rating to SGL-1 from SGL-2.

“The actions follow RBA's repayment of the funding it issued to finance a portion of the cash consideration for the discontinued acquisition of Euro Auctions and our expectation that the company will continue to generate free cash flow and maintain strong credit metrics including adjusted debt-to-EBITDA below 2x,” the agency said in a press release.

Moody’s noted RBA’s robust liquidity with about $1.3 billion in liquidity, including a cash balance of $367 million, excluding restricted cash, at June 30.

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