Moody’s Upgrades Hillenbrand Debt Rating

Foundation Partners why I partnered

In a release dated July 19 that you can read here, investor’s service Moody’s upgraded the debt rating of public company Hillenbrand Industries from a Ba1 to a Baa3.  They also noticed that the outlook of the company going forward is “Stable”.

Hillenbrand Industries is the owner of U.S. casket manufacturer market share leader Batesville Caskets.  Pertaining to Batesville directly, the report states, “. . the largely predictable Batesville segment (35% of revenues), which is declining slowly but has high margins and low capital expenditure needs that translates into solid free cash flow.”

The release went on to say this about Hillenbrand’s ratings and how it relates to their Batesville segment, “. . a more rapid drop in Batesville’s top line beyond the annual low-single digit (sales) decline currently expected could result in a downgrade (of credit)”.

Funeral Director Daily take:  We have no opinion on the ratings but I always like to point out that as a funeral home owner I always like reading debt and stock reports on death care public companies.  It’s many times remarkable what you can learn about our industry and the direction it is going by reading these pieces.

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