Moody's upgrades Trane Technologies

Moody's Ratings said it upgraded the senior unsecured ratings of Trane Technologies Global Holding Co. Ltd., Trane Technologies Co. LLC, Trane Technologies Luxembourg Finance SA, and Trane Technologies Financing Ltd. to A3 from Baa1. The companies are direct or indirect subsidiaries of Trane Technologies plc. The agency assigned an A3 issuer rating to Trane Technologies plc. The outlook was changed to stable from positive.

The agency said it expects resilient demand for Trane Technologies' products and services amid slower global macroeconomic growth with steady robust growth for its commercial heating ventilation and air conditioning and services business.

“Trane Technologies' A3 senior unsecured ratings reflect the company's sizable revenue base, good brand recognition, geographic diversity and strong cash generation,” Moody’s said in a statement.

The company is expected to generate strong cash flow over the next 12 to 18 months, buoyed by a considerable backlog. The agency said it also projects the company's debt to EBITDA will be kept below 2x absent material debt-funded acquisitions.

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