Moody’s upgrade SKF to Baa1; outlook stable

Moody’s has upgraded SKF’s senior unsecured ratings from Baa2 to Baa1, with a stable outlook. 

According to Moody’s, “Today’s rating action reflects the company’s efforts to restore balance sheet strength and thus lowering debt/EBITDA from 3.8x in 2014 to 2.5x in the last twelve months ending September 2018. This has been possible through the use of free cash flow generation to pay down debt and because of material improvements in operating performance.” 

About SKF

SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 17,000 distributor locations worldwide. Annual sales in 2017 were SEK 77 938 million and the number of employees was 45 678.