Moody's turns Elevate view to stable

Moody's Investors Service said it changed Elevate Textiles, Inc.'s outlook to stable from negative and affirmed its ratings, including the B3 on its first-lien senior secured term loan and Caa2 on its second-lien senior secured term loan.

“The outlook change to stable reflects our expectation for a return to sales growth in 2021 as global economic activity recovers, particularly in end markets such as denim and apparel, Elevate's two largest end markets. While we expect increased raw material costs will result in reduced margins and some pull back in credit metrics, these will be at least partially offset by the increased plant capacity due to recovering demand, cost savings and continuous improvement measures and price increases, said Mike Zuccaro, a Moody’s vice president, in a press release.

The agency said it expects leverage will remain in the 6.2 -6.5 times range.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.