Moody's gives Ingersoll Rand notes Baa3

Moody's Investors Service (Moody's) assigned a Baa3 senior unsecured rating to Ingersoll Rand Inc., including the company's planned senior unsecured notes offering. The agency upgraded the senior secured bank debt ratings at the company's subsidiary, Gardner Denver, Inc., to Baa2 from Ba1.

Concurrently, the Ba1 corporate family rating, Ba1-PD probability of default rating and SGL-1 speculative grade liquidity rating have been withdrawn. The outlook for Gardner Denver and Ingersoll-Rand Services Co. remains positive and the rating outlook assigned for Ingersoll Rand Inc. is positive.

"We expect that Ingersoll Rand will sustain at least mid-single digit organic revenue growth supplemented by acquisitions," said Gigi Adamo, a Moody's vice president-senior analyst, in a press release. "The upgrades reflect our expectation that Ingersoll Rand will maintain conservative financial policies that include well-balanced capital allocation with debt/EBITDA below 3x as unsecured debt becomes an increasingly important part of its capital structure."

The two-notch upgrade for the senior secured bank debt to Baa2 from Ba1 is based on the view that the notes will be structurally subordinated to the senior secured bank debt, Moody’s said.

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