Moody’s turns Tempur Sealy view to positive

Moody’s Investors Service said it revised Tempur Sealy International Inc.’s outlook to positive from stable.

“The positive outlook reflects Moody's expectation for continued good operating performance over the next 12-18 months that can lead to an upgrade if the company demonstrates a disciplined financial policy approach such that debt to EBITDA remains below 3x as the pandemic tailwinds subside,” the agency said in a press release.

Concurrently, the agency affirmed Tempur Sealy’s Ba3 corporate family rating, Ba3-PD probability of default rating and B1 senior unsecured debt rating. Moody’s upgraded the speculative grade liquidity rating to SGL-1 from SGL-2.

“The upgrade of the speculative grade liquidity rating to SGL-1 is due to Tempur Sealy's very good liquidity that is supported by $65 million of cash as of Dec. 31, 2020 and access to a $425 million revolving credit facility that expires in 2024, of which $425 million was available at year-end,” Moody’s said.

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