Moody’s assigns Baa1 to Veralto notes

Moody’s Investors Service said it assigned Veralto Corp.’s planned $2.6 billion of senior unsecured notes a Baa1 rating.

In connection with Veralto's spinoff from Danaher Corp. (Danaher), Veralto plans to raise new unsecured debt, consisting of $2.6 billion senior unsecured notes to fund a cash distribution to Danaher.

The deal is expected to close during the fourth quarter ended Dec. 30. The Veralto business will be comprised of Danaher's environmental & applied solutions segment.

“The assignment of the Baa1 senior unsecured rating reflects Moody’s expectation that the company will continue to operate with healthy EBITDA margins approximating 25% and strong cash generation while benefitting from environmental and regulatory tailwinds. Governance risk considerations, specifically the company's pro forma financial leverage at the time of spin off and expectation of debt/EBITDA being maintained around 2.5x were key drivers of the rating action,” the agency said in a press release.

The outlook is stable.

© 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.