Moody's ups Compass Minerals

Moody's Investors Service said it upgraded Compass Minerals International, Inc.'s corporate family rating to Ba1 from Ba2 and assigned Ba1 ratings (LGD3, 39%) to its proposed $125 million revolving credit facility due 2015 and amended/extended term loan tranche due 2016.

The rating on the senior unsecured notes due 2019 was upgraded to Ba2 (LGD5, 89%) from B1 (LGD5, 89%) and the term loan tranche due 2012 was upgraded to Ba1 (LGD3, 39%) from Ba2 (LGD3, 41%).

Moody's said the upgrade reflects the company's modest leverage for its rating category and the benefit to liquidity of securing a new five-year revolving credit facility.

The outlook is stable.

The upgrade reflects expectations for positive free cash flow from the salt business even as the company invests in expansionary capital projects, positive view of the agricultural sector, the improvement in liquidity and credit metrics, according to the agency.

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