Moody’s boosts ATI

Moody’s Investors Service said it upgraded ATI Inc.'s corporate family rating to Ba3 from B1, its probability of default rating to Ba3-PD from B1-PD, the rating on its senior unsecured notes to B1 from B2, and the rating on its senior unsecured shelf to (P)B1 from (P)B2. ATI's speculative grade liquidity rating was upgraded to SGL-1 from SGL-2 to reflect its very good liquidity profile.

Additionally, the agency raised Allegheny Ludlum, LLC's senior unsecured rating to B1 from B2 and changed the outlook for both companies to stable from positive.

"The upgrade of ATI Inc.'s ratings reflects our expectation that its operating performance and credit metrics will continue to strengthen over the next 12 to 18 months as it benefits from the recovery in its key aerospace end market and market share gains. It also incorporates our expectation the company will use a portion of its cash balance and future free cash flow to pay down debt," said Michael Corelli, a Moody's senior vice president and lead analyst for ATI Inc., in a press release.

Moody’s typically revised the outlook to stable after upgrading or downgrading an issuer. The agency said it expects “ATI's operating performance and credit metrics will strengthen over the next 12 to 18 months and its credit metrics will be strong for its rating.”

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