Moody’s rates Installed Building loan Ba2

Moody’s Investors Service said it assigned a Ba2 rating to Installed Building Products Inc.’s planned $500 million senior secured term loan. The agency also upgraded the company’s corporate family rating to Ba2 from Ba3 and its probability of default rating to Ba2-PD from Ba3-PD. Moody’s concurrently affirmed the B1 rating on the company’s senior unsecured notes, and the SGL-1 speculative grade liquidity rating is unchanged.

“The upgrade of IBP's CFR to Ba2 from Ba3 reflects Moody's expectation that the company will benefit from end market dynamics that support growth. Moody's forecasts healthy operating performance that will result in adjusted debt to EBITDA of about 2.5x at year end 2022 versus pro forma 3.2x at Dec. 31, 2021,” the agency said in a press release.

IBP will use the proceeds to replace its $200 million senior secured term loan maturing 2025. The balance of proceeds will be used for general corporate purposes, including bolt-on acquisitions to expand product offerings and branch locations.

The outlook is stable.

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