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Moody's Completed Periodic Review of Worthington Industries

Steel News - Published on Fri, 04 Oct 2019

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Moody's Investors Service has completed a periodic review of the ratings of Worthington Industries Inc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodologies, recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

Worthington's Baa3 senior unsecured rating reflects the company's moderate leverage, ample interest coverage, consistent free cash flow generation and the diversity of its business segments and end markets. The company's rating is constrained by its shareholder friendly initiatives, its acquisitive nature and inconsistent track record on deals, and the variability in its operating margins, which are closely tied to the volatility of raw material input costs, as well as the cyclicality of its major end markets.
The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodologies, recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

Worthington's Baa3 senior unsecured rating reflects the company's moderate leverage, ample interest coverage, consistent free cash flow generation and the diversity of its business segments and end markets. The company's rating is constrained by its shareholder friendly initiatives, its acquisitive nature and inconsistent track record on deals, and the variability in its operating margins, which are closely tied to the volatility of raw material input costs, as well as the cyclicality of its major end markets.

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Posted By : Rabi Wangkhem on Fri, 04 Oct 2019
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