MRC Global Announces Moody’s Upgrade in Credit Rating To ‘B1’ from ‘B2’, Outlook Stable
MRC Global Inc. (NYSE: MRC) announced that Moody's Ratings upgraded the company's corporate family rating to 'B1' from 'B2' with a stable outlook. Moody's also upgraded the rating of the anticipated Term Loan B to 'B2'. The upgrade was based on MRC Global's moderate leverage, ample interest coverage, modest capital spending requirements, and solid operating performance.
S&P Global Ratings affirmed MRC Global's issuer-credit rating of 'B' with a stable outlook, citing the company's ability to sustain supportive operating performance and generate positive free cash flow. S&P rated the anticipated new Term Loan with a 'B' rating.
Rob Saltiel, MRC Global's President and CEO, expressed satisfaction with the credit rating upgrade, stating it reflects the company's progress in strengthening its capital structure and increasing financial flexibility.
MRC Global Inc. (NYSE: MRC) ha annunciato che le agenzie di rating Moody's hanno migliorato il rating della famiglia aziendale a 'B1' da 'B2' con un outlook stabile. Moody's ha anche elevato il rating del previsto Term Loan B a 'B2'. Questo miglioramento si basa sul moderato indebitamento di MRC Global, sull'ampia copertura degli interessi, su modesti requisiti di spesa in conto capitale e su una solida performance operativa.
Le agenzie di rating S&P Global hanno confermato il rating di credito del emittente di MRC Global a 'B' con un outlook stabile, citando la capacità dell'azienda di mantenere prestazioni operative favorevoli e generare un flusso di cassa libero positivo. S&P ha assegnato un rating di 'B' al previsto nuovo Term Loan.
Rob Saltiel, Presidente e CEO di MRC Global, ha espresso soddisfazione per il miglioramento del rating di credito, affermando che riflette i progressi dell'azienda nel rafforzare la propria struttura patrimoniale e aumentare la flessibilità finanziaria.
MRC Global Inc. (NYSE: MRC) anunció que la agencia de calificación Moody's mejoró la calificación de la familia corporativa de la empresa a 'B1' desde 'B2' con una perspectiva estable. Moody's también elevó la calificación del anticipado Term Loan B a 'B2'. La mejora se basó en el moderado apalancamiento de MRC Global, la amplia cobertura de intereses, los modestos requisitos de gasto de capital y un sólido rendimiento operativo.
Las agencias de calificación S&P Global confirmaron la calificación de crédito del emisor de MRC Global en 'B' con una perspectiva estable, citando la capacidad de la empresa para mantener un rendimiento operativo favorable y generar un flujo de caja libre positivo. S&P calificó el nuevo Term Loan anticipado con una calificación de 'B'.
Rob Saltiel, presidente y CEO de MRC Global, expresó su satisfacción con la mejora de la calificación de crédito, afirmando que refleja el progreso de la empresa en el fortalecimiento de su estructura de capital y el aumento de la flexibilidad financiera.
MRC Global Inc. (NYSE: MRC)는 Moody's가 회사의 기업 가족 등급을 'B2'에서 'B1'로 상향 조정하였다고 발표했습니다. 전망은 안정적입니다. Moody's는 예상되는 Term Loan B의 등급도 'B2'로 상향 조정했습니다. 이 개선은 MRC Global의 낮은 레버리지, 충분한 이자 보전, 적당한 자본 지출 요건 및 탄탄한 운영 성과를 바탕으로 이루어졌습니다.
S&P Global Ratings는 MRC Global의 채권자 신용 등급이 'B'로 안정적 전망을 유지하고 있으며, 이는 회사가 지원적인 운영 성과를 지속하고 긍정적인 자유 현금 흐름을 생성할 수 있는 능력이 있다는 점을 지적했습니다. S&P는 예정된 새로운 Term Loan에 'B' 등급을 부여했습니다.
MRC Global의 회장 겸 CEO인 Rob Saltiel은 신용 등급이 개선된 것에 대해 매우 만족하며, 이는 회사가 자본 구조를 강화하고 재무 유연성을 높이는 과정에서의 진전을 반영한다고 밝혔습니다.
MRC Global Inc. (NYSE: MRC) a annoncé que l'agence de notation Moody's a relevé la note de la famille d'entreprise à 'B1' contre 'B2' avec une perspective stable. Moody's a également amélioré la note du prêt à terme B prévu à 'B2'. Cette amélioration repose sur l'endettement modéré de MRC Global, une large couverture des intérêts, des exigences de dépenses en capital modestes et des performances opérationnelles solides.
Les agences de notation S&P Global ont confirmé la note de crédit de l'émetteur de MRC Global à 'B' avec une perspective stable, citant la capacité de l'entreprise à maintenir des performances opérationnelles favorables et à générer des flux de trésorerie disponibles positifs. S&P a attribué une note de 'B' au nouveau prêt à terme prévu.
Rob Saltiel, président et PDG de MRC Global, a exprimé sa satisfaction quant à l'amélioration de la note de crédit, affirmant qu'elle reflète les progrès réalisés par l'entreprise dans le renforcement de sa structure de capital et l'augmentation de la flexibilité financière.
Die MRC Global Inc. (NYSE: MRC) gab bekannt, dass Moody's Ratings die Unternehmensfamilienbewertung von 'B2' auf 'B1' erhöht hat und einen stabilen Ausblick bietet. Moody's hat auch die Bewertung des erwarteten Term Loan B auf 'B2' angehoben. Die Aufwertung basierte auf der moderaten Verschuldung von MRC Global, einer ausreichenden Zinsenabdeckung, bescheidenen Investitionsausgaben und einer soliden Betriebsergebnisse.
S&P Global Ratings bestätigte die Emittenten-Kreditbewertung von MRC Global mit 'B' und stabilem Ausblick und verwies dabei auf die Fähigkeit des Unternehmens, eine unterstützende Betriebsleistung aufrechtzuerhalten und einen positiven freien Cashflow zu generieren. S&P bewertete das bevorstehende neue Term Loan mit einem 'B'-Rating.
Rob Saltiel, Präsident und CEO von MRC Global, äußerte Zufriedenheit mit der Verbesserung der Kreditbewertung und erklärte, dass dies den Fortschritt des Unternehmens bei der Stärkung seiner Kapitalstruktur und der Erhöhung der finanziellen Flexibilität widerspiegelt.
- Moody's upgraded MRC Global's corporate family rating to 'B1' from 'B2'
- Moody's upgraded the rating of the anticipated Term Loan B to 'B2'
- S&P affirmed MRC Global's issuer-credit rating of 'B' with a stable outlook
- Company demonstrates moderate leverage and ample interest coverage
- MRC Global shows solid operating performance and generates positive free cash flow
- Repurchase of preferred equity viewed as leverage neutral and positive for financial flexibility
- None.
Insights
The credit rating upgrade from Moody's to 'B1' from 'B2' is a significant positive development for MRC Global. This upgrade, along with the stable outlook, reflects the company's improved financial health and operational performance. Key factors contributing to this upgrade include:
- Moderate leverage and ample interest coverage
- Modest capital spending requirements
- Solid operating performance
- Positive free cash flow generation
The upgrade of the new Term Loan B to 'B2' also indicates improved creditworthiness. S&P's affirmation of the 'B' rating with a stable outlook further supports this positive assessment. The repurchase of preferred equity, viewed as leverage neutral, enhances MRC Global's financial flexibility.
For investors, this upgrade signals reduced credit risk and potentially lower borrowing costs for MRC Global. It may also positively impact the company's stock price and attract more institutional investors. However, the 'B' category still indicates speculative-grade debt, suggesting some ongoing financial risk.
HOUSTON, Oct. 15, 2024 (GLOBE NEWSWIRE) -- MRC Global Inc. (NYSE: MRC), today announced that Moody’s Ratings (“Moody’s”) upgraded the company’s corporate family rating to ‘B1’ from ‘B2’ with a stable outlook. Also, in conjunction with the company’s issuance of a new Term Loan B, Moody’s upgraded the rating of the anticipated Term Loan B to a ‘B2’, a level higher than the company’s previous term loan.
Moody’s based its ratings upgrade, in part, on the company's moderate leverage and ample interest coverage, modest capital spending requirements and solid operating performance. Moody’s affirmed the outlook as ‘Stable’ based on their view that the company’s performance will remain strong and continue to generate positive free cash flow, and that the company’s credit metrics will remain robust.
In addition, S&P Global Ratings (“S&P”) affirmed MRC Global's issuer-credit rating of ‘B’ with a stable outlook based on the company’s ability to sustain supportive operating performance and generate positive free cash flow. S&P stated that it views the repurchase of the preferred equity as leverage neutral and positive overall as it increases the company’s financial flexibility. S&P also rated the anticipated new Term Loan with a ‘B’ rating.
Rob Saltiel, MRC Global’s President and CEO commented, “I am pleased with the credit rating upgrade from Moody’s, which reflects the progress we have made in strengthening our capital structure and increasing our financial flexibility by bolstering our balance sheet and generating strong, consistent cash flows.”
About MRC Global Inc.
Headquartered in Houston, Texas, MRC Global (NYSE: MRC) is the leading global distributor of pipe, valves, fittings (PVF) and other infrastructure products and services to diversified end-markets including the gas utilities, downstream, industrial and energy transition, and production and transmission infrastructure sectors. With over 100 years of experience, MRC Global has provided customers with innovative supply chain solutions, technical product expertise and a robust digital platform from a worldwide network of 219 locations including valve and engineering centers. The company’s unmatched quality assurance program offers over 300,000 SKUs from over 8,500 suppliers, simplifying the supply chain for approximately 10,000 customers. Find out more at www.mrcglobal.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as “will,” “expect,” “expected,” “anticipated” and similar expressions are intended to identify forward-looking statements.
Statements about the company’s business, including statements of S&P and Moody’s that the company has included in this news release, including statement about the company’s leverage, interest coverage, capital spending requirements, operating performance, free cash flow, financial flexibility and balance sheet, are not guarantees of future performance. These statements are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, most of which are difficult to predict and many of which are beyond MRC Global’s control, including the factors described in the company’s SEC filings that may cause the company’s actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements.
These risks and uncertainties include (among others) decreases in capital and other expenditure levels in the industries that the company serves; U.S. and international general economic conditions; geopolitical events; decreases in oil and natural gas prices; unexpected supply shortages; loss of third-party transportation providers; cost increases by the company’s suppliers and transportation providers; increases in steel prices, which the company may be unable to pass along to its customers which could significantly lower the company’s profit; the company’s lack of long-term contracts with most of its suppliers; suppliers’ price reductions of products that the company sells, which could cause the value of its inventory to decline; decreases in steel prices, which could significantly lower the company’s profit; a decline in demand for certain of the products the company distributes if tariffs and duties on these products are imposed or lifted; holding more inventory than can be sold in a commercial time frame; significant substitution of renewables and low-carbon fuels for oil and gas, impacting demand for the company’s products; risks related to adverse weather events or natural disasters; environmental, health and safety laws and regulations and the interpretation or implementation thereof; changes in the company’s customer and product mix; the risk that manufacturers of the products that the company distributes will sell a substantial amount of goods directly to end users in the industry sectors that the company serves; failure to operate the company’s business in an efficient or optimized manner; the company’s ability to compete successfully with other companies; the company’s lack of long-term contracts with many of its customers and the company’s lack of contracts with customers that require minimum purchase volumes; inability to attract and retain employees or the potential loss of key personnel; adverse health events, such as a pandemic; interruption in the proper functioning of the company’s information systems; the occurrence of cybersecurity incidents; risks related to the company’s customers’ creditworthiness; the success of acquisition strategies; the potential adverse effects associated with integrating acquisitions and whether these acquisitions will yield their intended benefits; impairment of the company’s goodwill or other intangible assets; adverse changes in political or economic conditions in the countries in which the company operates; the company’s significant indebtedness; the dependence on the company’s subsidiaries for cash to meet parent company obligations; changes in the company’s credit profile; potential inability to obtain necessary capital; the sufficiency of the company’s insurance policies to cover losses, including liabilities arising from litigation; product liability claims against the company; pending or future asbestos-related claims against the company; exposure to U.S. and international laws and regulations, regulating corruption, limiting imports or exports or imposing economic sanctions; risks relating to ongoing evaluations of internal controls required by Section 404 of the Sarbanes-Oxley Act; risks related to changing laws and regulations including trade policies and tariffs; and the potential share price volatility and costs incurred in response to any shareholder activism campaigns.
For a discussion of key risk factors, please see the risk factors disclosed in the company’s SEC filings, which are available on the SEC’s website at www.sec.gov and on the company’s website, www.mrcglobal.com. MRC Global’s filings and other important information are also available on the Investors page of the company’s website at www.mrcglobal.com.
Undue reliance should not be placed on the company’s forward-looking statements. Although forward-looking statements reflect the company’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the company’s actual results, performance or achievements or future events to differ materially from anticipated future results, performance or achievements or future events expressed or implied by such forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except to the extent required by law.
Contact:
Monica Broughton
VP, Investor Relations & Treasury
MRC Global Inc.
Monica.Broughton@mrcglobal.com
832-308-2847
FAQ
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