Moody’s assigns Iochpe-Maxion, notes Ba3

Moody’s Investors Service said it gave provisional (P) Ba3 ratings to Iochpe-Maxion SA and its planned seven-year senior unsecured sustainability-linked notes of up to $400 million. The notes will be co-issued by Iochpe-Maxion Austria GmbH and Maxion Wheels de Mexico, S de RL de CV and guaranteed by Iochpe-Maxion.

“Iochpe-Maxion SA’s (Iochpe-Maxion) (P)Ba3 rating reflects the company’s size, scale and position as a leading global supplier of steel and aluminum wheels for light and commercial vehicles and a major provider of structural components in the Americas, as well as its good geographic diversity and long-standing relationship with OEMs,” Moody’s said in a press release.

The notes are part of Iochpe-Maxion’s liability management strategy, and proceeds will be used to pay down debt instruments maturing in the next few years. The proposed sustainability-linked notes include coupon step-up clauses if the company does not achieve specific sustainability performance targets.

The outlook is stable, reflecting expectations Iochpe-Maxion’s profitability and leverage will return to levels before the coronavirus outbreak in the next 12 to 18 months, the agency said.

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