On December 19 Standard and Poor’s Global Ratings issued a rating on Hillenbrand’s  amended $900 million unsecured revolving credit facility expiring in December 2022.  The rating assigned was BBB.  The company restated that it will use this credit facility for financing working capital needs and general corporate purposes.

Standard and Poor’s gave the following reasons for rating the credit facility BBB:

• Hillenbrand has a good position in the casket business
• The company has improved geographic diversity following its recent flow control acquisitions
• Hillenbrand’s has exposure to cyclical industrial markets through its process equipment group

Standard and Poor’s also gave the Hillenbrand revolving credit facility a stable outlook going forward with the expectation that Hillenbrand will continue to increase EBITDA, generate moderate free cash flow,  pursue opportunistic acquisitions, and maintain a debt to EBITDA ratio of between 2x and 3x for the next 24 months.

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