Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers C > Headlines for Celestica Inc. > News item |
Moody's: Celestica outlook positive
Moody's Investors Service said it affirmed Celestica Inc.'s B1 corporate family and B3 (LGD5, 85%) senior subordinated notes ratings and changed the outlook to positive from stable. The speculative-grade liquidity was upgraded to SGL-1 from SGL-2.
The outlook revision reflects Celestica's improvement in operating and financial performance metrics with tangible progress in operating margin expansion, working capital management and debt reduction resulting in adjusted debt-to-EBITDA ratio of 2.4x compared with 3.5x as of March 2008, according to the agency.
The B1 corporate family rating is supported by Celestica's status as a tier 1 EMS provider, strong liquidity position and good internal execution following the recent turnaround, the agency said.
The rating is constrained by the company's smaller size, limited demand visibility and historical volatility in operating performance, Moody's said.
The upgrade of the speculative-grade liquidity rating is driven by the renewal and extension of the revolver, which now matures in April 2011, the agency said.
© 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.