New York, November 06, 2015 -- Kennametal's lower sales, decreased operating income and reduced fiscal 2016 guidance following its fiscal 2016 first quarter earnings release is credit negative, but its Baa2 senior unsecured rating is unaffected. The rating outlook remains negative. The company's trailing twelve month adjusted debt-to-EBITDA has increased to approximately 3.0x from 2.7x at fiscal year-end 2015 after declining each quarter from 3.1x at fiscal year-end 2014. This metric is also above the 2.5x metric we have indicated could cause a downgrade. The ratings are unaffected at this time because we expect adjusted debt-to-EBITDA to decline below 2.5x by fiscal year-end 2016 through debt repayment and realized benefits from Kennametal's restructuring programs. Kennametal has demonstrated its commitment to conservative financial policies as evidenced by $310 million of debt reduction since fiscal year-end 2014. Furthermore, Kennametal has announced that it will use divestiture proceeds to further reduce debt.

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