Moody's upgrades Intergraph to B1

Moody's Investors Service said it raised Intergraph Corp.'s corporate family and probability-of-default ratings to B1 from B2 due to continued improvement in profitability, free cash flow and reduction in leverage.

The agency also changed the loss-given-default assessment assigned to the company's $75 million senior secured revolving credit facility and $352 million senior secured first-lien loan to LGD3 (33%) from LGD2 (26%) and to its $200 million senior secured second-lien loan to LGD5 (86%) from LGD5 (72%). The first-lien loans and second-lien loans are rated Ba3 and B3, respectively.

The outlook is stable.

The agency said the ratings reflect its expectations that the company will continue to improve its profitability while maintaining moderate leverage, its positive operating trends and high customer retention rates.

The rating is constrained by the company's shareholder-friendly strategy and by a highly competitive market landscape that includes formidable large-scale and better capitalized companies, Moody's said.

© 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.