Moody’s ups Leslie’s Poolmart, loan

Moody's Investors Service said it upgraded Leslie's Poolmart, Inc.’s corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD and senior secured term loan to B1 from B2.

These actions conclude the review for upgrade initiated on June 16 upon the adoption of the agency’s updated approach for standard adjustments for operating leases.

Moody’s said the upgrade reflects Leslie's approximately 0.8 times decline in lease-adjusted debt/EBITDA from 7.1 times to 6.3 times (as of June 27, 2015) due to changes in Moody's approach for capitalizing operating leases.

The stability in demand for pool supplies relative to other consumer products and the company's good liquidity profile, including its ability to generate positive annual free cash flow even during periods of unfavorable weather patterns, also support the rating upgrade.

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