Research Update: Clarios Global L.P. Upgraded To 'B+' From 'B' On Improved Credit Metrics; Debt Ratings Raised; Outlook Stable

U.S.–based Clarios Global L.P.'s leverage declined through debt repayment, sustained operating performance, and improved cash flow. First-quarter results showed substantial margin improvement, and we now expect margins will rise over the next couple of years and therefore forecast further deleveraging. We raised our issuer credit rating on Clarios to 'B+' from 'B', reflecting improved credit metrics and our belief that the company's profitability will continue to improve through supportive demand trends and positive operating performance. At the same time, we raised our issue-level rating on its senior secured debt to 'B+' from 'B'. The recovery rating remains '3' (50%-70%; rounded recovery: 60%). We also assigned a 'B+' issue-level rating and '3' recovery rating (50%-70%; rounded recovery: 60%) to the company's

...- U.S.¡based Clarios Global L.P.'s leverage declined through debt repayment, sustained operating performance, and improved cash flow. First-quarter results showed substantial margin improvement, and we now expect margins will rise over the next couple of years and therefore forecast further deleveraging. - We raised our issuer credit rating on Clarios to 'B+' from 'B', reflecting improved credit metrics and our belief that the company's profitability will continue to improve through supportive demand trends and positive operating performance. - At the same time, we raised our issue-level rating on its senior secured debt to 'B+' from 'B'. The recovery rating remains '3' (50%-70%; rounded recovery: 60%). We also assigned a 'B+' issue-level rating and '3' recovery rating (50%-70%; rounded recovery: 60%) to the company's new $800 million revolving credit facility. The new $800 million revolving facility was used to refinance the company's existing $750 million revolving credit facility. We...

Research Update