Research Update: Clarios Global L.P. Outlook Revised To Positive On Improved Operating Performance And Debt Repayment; Ratings Affirmed

U.S.–based Clarios Global L.P.?s credit metrics improved through stronger operating performance and debt repayment. Therefore, we revised our outlook on the company to positive from stable and affirmed our 'B+' issuer credit rating. At the same time, we affirmed our 'B+' senior secured issue level rating and '3' recovery rating on Clarios' senior secured debt. We also affirmed our 'B-' issue level rating and '6' recovery rating on the company's senior unsecured debt. The positive outlook reflects the potential that we could raise our rating within the next 12 months if the company establishes a track record of maintaining leverage below 5x and free operating cash flow (FOCF) to debt above 5%, with a low risk of releveraging, such that

...- U.S.¡based Clarios Global L.P.'s credit metrics improved through stronger operating performance and debt repayment. - Therefore, we revised our outlook on the company to positive from stable and affirmed our 'B+' issuer credit rating. - At the same time, we affirmed our 'B+' senior secured issue level rating and '3' recovery rating on Clarios' senior secured debt. We also affirmed our 'B-' issue level rating and '6' recovery rating on the company's senior unsecured debt. - The positive outlook reflects the potential that we could raise our rating within the next 12 months if the company establishes a track record of maintaining leverage below 5x and free operating cash flow (FOCF) to debt above 5%, with a low risk of releveraging, such that we view the company's financial policy as supportive of maintaining these improved credit metrics....

Research Update