21st Feb 2019 17:55
LONDON (Alliance News) - Moody's Investors Service on Thursday has affirmed the B2 corporate family rating for Hero Acquisitions Ltd and revised the outlook on the ratings to stable from negative.
Hero Acquisitions, which provides tool and equipment hire, operates mainly in the business-to-business market through HSS Hire Group PLC.
The revision in HSS Hire's outlook reflects the company's decreasing Moody's adjusted leverage, following HSS Hire's successful network reconfiguration and improved core rental performance.
The company's liquidity position has improved due to the sale of UK platforms and the debt refinancing in
August last year which extended the majority of debt maturities to 2023 from 2019 and included a GBP25 million revolving credit facility.
The ratings agency said the stable outlook now reflects HSS Hire's recent positive trend in earnings and credit metrics.
Looking forward, the ratings agency said upward pressure on the rating could occur if HSS Hire achieves consistent, positive free cash flow while maintaining at least adequate liquidity.
Meanwhile, HSS Hire's rating could be downgraded if the positive turnaround in rental revenue reverses, Moody's said.
HSS Hire shares closed 6.3% lower on Thursday at 34.20 pence each.
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