Moody’s downgrades Robertshaw

Moody’s Investors Service said it downgraded Robertshaw US Holding Corp.’s corporate family rating to Caa1 from B3, the probability of default rating to Caa1-PD from B3-PD, the first-lien senior secured term loan rating to Caa1 from B3 and the second-lien senior secured term loan rating to Caa3 from Caa2.

“The downgrades reflect expectations for weak near-term results following continued underperformance relative to Moody’s expectations, exacerbated by a protracted recovery in key credit metrics from trough demand impacts in the first half of 2020 as a result of a pullback in appliance spending. Moody’s adjusted debt-to-EBITDA will eclipse 9x for fiscal year-end 2021 (March 2021) and will remain high even with modest improvement during calendar 2021. Lower volumes in the appliance end markets, approximately two-thirds of the company’s revenues, with significant weakness in commercial appliances hit hard by restaurant capacity restrictions, will take time to rebound,” the agency said in a press release.

The outlook is stable. The outlook reflects the expectations revenue growth will approach normalized U.S. GDP expansion with margins resuming a positive trajectory from a low level, boosted by modestly higher volumes, benefits from cost-saving initiatives and planned annual price increases, Moody’s said.

© 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.