Moody's reviews Trane for upgrade

Moody's Investors Service said it placed the Baa2 senior unsecured ratings of Trane Technologies Global Holding Co. Ltd., Trane Technologies Co. LLC, Trane Technologies Luxembourg Finance SA and Trane Technologies Financing Ltd. under review for upgrade. All of these entities are direct or indirect subsidiaries of Trane Technologies plc.

The agency revised the outlook, previously stable, to rating under review.

“The ratings review for upgrade reflects Moody's expectation that Trane's revenue will continue to grow, driven by both commercial HVAC (heating, ventilation and air conditioning) demand and positive pricing actions. These factors will generate strong cash flow levels, and the company's robust backlog will provide good revenue visibility,” the agency said in a press release.

However, Moody’s also noted that Trane is susceptible to inflationary cost pressures and supply chain challenges.

Moody’s said it will assess Trane's financial policy, including capital allocation priorities and management of financial leverage, as part of its review.

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