Allegion PLC Corporate Credit Rating Raised To 'BBB-', Outlook Stable; Other Rating Actions Taken

Ireland-based security products and services producer Allegion plc has posted strong first quarter improvement in sales and earnings due to recent acquisitions, organic growth, and better operating margins in North America and Europe. We expect Allegion's sales to grow about 6%-7% in 2016, with EBITDA approaching or exceeding $500 million, resulting in debt-to-EBITDA leverage of 3x or less and EBITDA to interest coverage of about 8x. We are raising our corporate credit rating on Allegion to 'BBB-' from 'BB+'. At the same time, we are raising our issue-level ratings on the company's two senior unsecured note issues totaling $600 million to 'BBB-' from 'BB+'. In addition, we are lowering our ratings on the company's $500 million senior secured revolving credit

...+ Ireland-based security products and services producer Allegion plc has posted strong first quarter improvement in sales and earnings due to recent acquisitions, organic growth, and better operating margins in North America and Europe. + We expect Allegion's sales to grow about 6%-7% in 2016, with EBITDA approaching or exceeding $500 million, resulting in debt-to-EBITDA leverage of 3x or less and EBITDA to interest coverage of about 8x. + We are raising our corporate credit rating on Allegion to '###-' from '##+'. At the same time, we are raising our issue-level ratings on the company's two senior unsecured note issues totaling $600 million to '###-' from '##+'. In addition, we are lowering our ratings on the company's $500 million senior secured revolving credit and $975 million term loan to '###-' from '###'. + The outlook is stable, reflecting our expectation that Allegion will maintain leverage ratios in a narrow range of 2.75x and 3.25x over the next two years while maintaining interest...

Ratings Action