Moody’s rates REV ABL B1, view to positive

Moody's Investors Service said it changed REV Group, Inc.'s outlook to positive from stable due to the expectation that the company's financial policies will be supportive of an improved long-term financial leverage profile following the repayment of the company's senior secured notes due November 2019 with IPO proceeds.

The agency also expects the company's profit improvement initiatives will yield further growth in EBITDA margins, which expanded from 3.2% in 2014 to 6.9% for the last 12 months through April 2017.

Concurrently, Moody's assigned a B1 (LGD-4) rating to the company's $350 million asset-based revolving credit facility due 2022 and an SGL-3 speculative grade liquidity rating.

REV's B1 corporate family rating and B1-PD probability of default ratings were affirmed.

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