RRX - Regal Rexnord receives investment-grade rating from Moody's Finch

Regal Rexnord ( NYSE: RRX ) received investment-grade corporate ratings from Moody's and Fitch, the maker of electric motors and industrial powertrains announced.

Moody's assigned a first-time long-term issuer rating of Baa3 to Regal with a stable outlook, and Fitch assigned a first-time long-term issuer default rating of BBB- with a stable outlook. In addition, Standard & Poor's assigned a BB+ issuer credit rating with a stable outlook to Regal.

The ratings were issued in connection with Regal's plans to seek financing for its planned acquisition of Altra Industrial Motion ( NASDAQ: AIMC ) for about $4.95 billion in cash.

Regal Rexnord ( RRX ) this year has declined 34%, compared with a 17% decline for the Standard & Poor's 400 mid-cap index ( SP400 ).

"These investment grade ratings recognize Regal Rexnord's track record of deleveraging following acquisitions, and of successful synergy realization and merger integration," Louis Pinkham, CEO of Regal, said in the announcement. "This is an important milestone as we move proactively to put a permanent debt structure in place to fund the Altra acquisition."

He said the company expects net leverage of 2.5 to 3.0 times in 2024 as it moves to its target of 2.0 to 2.5 times.

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