Moody’s rating outlook revised to stable
Moody’s Investors Service (Moody’s) has affirmed the credit rating of ‘Baa2' for Boral Limited (ASX:BLD) and revised Boral’s rating outlook from negative to stable.
In its report, Moody’s noted “Boral recently introduced a well-articulated framework on financial leverage and return on capital. These prudent measures will have implications for the company’s financial strategy and risk management, a key component in our governance risk assessment framework. Today’s rating action considers the impact of Boral’s governance practices on its credit profile, which Moody’s views as credit positive.”
Boral’s CEO & Managing Director, Zlatko Todorcevski, said: “Boral welcomes the decision by Moody’s to reaffirm its investment grade credit rating and revise the company’s rating outlook to stable, recognising the commitment and work undertaken to strengthen Boral’s balance sheet and reduce leverage”.
“We remain focused on cash generation and disciplined allocation of capital, recognising that maintaining a strong balance sheet is in the best interests of debt and equity investors. It provides flexibility to withstand headwinds and take advantage of opportunities throughout the cycle.”
“We are currently targeting to reduce Boral’s net debt to $1.5 billion. We expect that Boral’s net debt position will fall below target when we receive the proceeds from the sale of Boral’s 50% interest in the USG Boral and Meridian Brick joint ventures, which are expected this financial year. This will create a surplus of approximately $1 billion, which will be available to reinvest or return to shareholders.”