Research Update: TriMas Corp. Rating Raised To 'BB' From 'BB-' On Improved Credit Measures; Outlook Is Stable

TriMas Corp. has achieved greater cash flows through top-line growth and margin growth, stemming from restructuring efforts and broad-based improvements in most of its end markets. As a result, the company's credit measures have improved, with our adjusted debt to EBITDA for the company at about 2.3x at year-end 2017 and likely to improve in 2018. We are raising the corporate credit rating on TriMas to 'BB' from 'BB-'. The outlook is stable. We are also raising the issue-level rating on the company's senior unsecured debt to 'BB-' from 'B+'. The recovery rating on the debt remains '5'. The stable outlook reflects our expectations that the company's good cash flow generation will allow the company to pursue small scale acquisitions

...+ TriMas Corp. has achieved greater cash flows through top-line growth and margin growth, stemming from restructuring efforts and broad-based improvements in most of its end markets. + As a result, the company's credit measures have improved, with our adjusted debt to EBITDA for the company at about 2.3x at year-end 2017 and likely to improve in 2018. + We are raising the corporate credit rating on TriMas to '##' from '##-'. The outlook is stable. We are also raising the issue-level rating on the company's senior unsecured debt to '##-' from 'B+'. The recovery rating on the debt remains '5'. + The stable outlook reflects our expectations that the company's good cash flow generation will allow the company to pursue small scale acquisitions and modest share repurchases while maintaining adjusted debt to EBITDA under 3x....

Research Update