Moody's flips Hyster-Yale view downward

Moody's Investors Service said it changed the outlook to negative from positive but affirmed Hyster-Yale Group, Inc.'s B2 corporate family rating and B2-PD probability of default rating, along with the B1 rating on the company's first-lien term loan. There is no change to Hyster-Yale's speculative grade liquidity rating of SGL-2.

“The negative outlook reflects Moody's expectations that EBITA margins will remain close to breakeven in 2022 and below normal levels of at least 2% in 2023 as input cost inflation and supply chain difficulties persist. Any worsening in macro-economic conditions could delay a recovery in Hyster-Yale's margins, leading to cash burn and credit metrics, which would no longer support the B2 rating,” the agency said in a press release.

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