Moody’s changes American Trailer view to stable

Moody’s Investors Service said it changed the outlook to stable from negative and affirmed the ratings of American Trailer World Corp., including the B3 corporate family rating, the B3-PD probability of default rating and the Caa1 senior secured notes rating.

“The ratings affirmation and change in outlook reflect Moody’s expectation for credit metrics to improve with a gradual recovery of ATW’s markets over the next year, building on the revenue and earnings momentum from a rebound in consumer demand for ATW’s trailers following the second quarter of 2020. ATW improved its operations in 2020 and implemented cost measures such that, even with revenue pressures, financial leverage was lower than Moody’s expected and free cash flow improved over the year,” the agency said in a press release.

Moody’s said it forecasts ATW will continue to generate positive annual free cash flow through 2021, benefiting from an uptick in business activity that should support modest earnings improvement.

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