RIPON, Wis. — Alliance Laundry Holdings Inc. has received a credit rating upgrade from Moody’s Ratings, a move the commercial laundry equipment manufacturer says will reduce borrowing costs and strengthen its financial flexibility as it pursues long-term growth.
Moody’s upgraded Alliance’s corporate family rating to B1 from B2 and also raised the ratings on the company’s senior secured first-lien revolving credit facility and senior secured first-lien term loan to B1. The action follows an earlier ratings upgrade from S&P Global Ratings.
According to Alliance, the combined ratings improvements will reduce borrowing costs on its term loan by 25 basis points under the company’s credit agreement.
Chief Financial Officer Dean Nolden credits Alliance’s operational and financial discipline for the improved rating, noting that the company has continued to grow while reducing debt. He says strengthening the balance sheet remains a key component of its capital allocation strategy and reflects consistent free cash flow and disciplined financial management.
Moody’s based the upgrade on Alliance’s continued deleveraging, solid operating performance, steady organic growth and strong cash-flow generation, Alliance says. The lower borrowing costs are expected to provide additional financial flexibility as the company continues executing its long-term growth strategy.
Alliance Laundry manufactures commercial laundry equipment under several brands, including Speed Queen and Huebsch. It serves customers in approximately 150 countries through a worldwide distributor network and employs more than 4,000 people.
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