Moody's eyes Altra for upgrade

Moody's Investors Service said it placed Altra Industrial Motion Corp.'s ratings on review for upgrade, including Altra's Ba2 corporate family rating, Ba2-PD probability of default rating and Ba3 rating on the senior notes, issued by the company's subsidiary, Stevens Holding Co., Inc. The company's SGL-1 speculative grade liquidity rating remains unchanged. The outlook was stable.

The review follows the announced acquisition of Altra for about $5 billion in enterprise value by investment-grade rated Regal Rexnord Corp. The closing of the transaction is subject to the receipt of regulatory approvals and Altra's shareholder approval and the satisfaction of other customary closing conditions. The deal is expected to close in the first half of 2023.

“The ratings review for upgrade reflects our expectation that Altra's credit profile will improve once it is acquired by Regal Rexnord, an investment-grade rated company. Altra will become part of a larger, more diverse company with greater financial resources. Regal Rexnord's historically conservative financial leverage, very good liquidity and good track record of acquisition execution is also considered,” Moody’s said in a press release.

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