Alliance Laundry Upgraded to Moody’s B1 Rating, Term Loan Costs Fall 25 bps
ALH•Moody’s upgraded Alliance Laundry’s corporate family rating and senior secured revolver and term loan from B2 to B1, reflecting improved credit strength. The upgrade cuts Alliance’s term loan borrowing costs by 25 basis points and follows ongoing leverage reduction, steady organic growth and solid cash flow generation.
1. Credit Rating Upgrade
Moody’s raised Alliance Laundry’s corporate family rating to B1 from B2 and upgraded its senior secured first lien revolving credit facility and term loan to B1, reflecting the company’s improved credit profile.
2. Cost of Borrowing Reduction
The upgrade lowers borrowing costs on Alliance’s term loan by 25 basis points and, combined with a prior S&P upgrade, enhances liquidity and reduces financing expenses under the company’s credit agreement.
3. Strategic Drivers
The rating action was supported by consistent deleveraging, steady organic revenue growth, solid global market leadership in commercial laundry equipment and disciplined free cash flow generation that underpins Alliance’s capital allocation strategy.
