Triumph Group Sees Credit Rating Boost from Moody’s and S&P


RADNOR, PATriumph Group, Inc. (NYSE: TGI) announced this week that its credit ratings have been upgraded by both Moody’s Ratings and S&P Global Ratings, a significant development for the aerospace company.

Moody’s raised Triumph’s corporate family rating to B3 from Caa1 on June 28. The upgrade reflects the company’s efforts to materially reduce its leverage by fully paying off its 2025 notes and partially repaying its 2028 notes.

S&P also upgraded Triumph’s issuer credit rating to B- from CCC+ on June 6. The agency cited lower debt levels and favorable market conditions as key factors behind the improved rating. Both credit agencies have assigned Triumph a stable outlook.

Jim McCabe, Triumph’s senior vice president and chief financial officer, emphasized the strategic actions the company has taken over the past year. “TRIUMPH took important strategic actions over the last year to create a more streamlined, value-added and IP-based business with a much stronger balance sheet,” he said. McCabe added that the upgrades highlight the company’s commitment to increasing shareholder value through deleveraging, EBITDAP margin expansion, and free cash flow generation.

The improvements in credit ratings come as Triumph works on reducing debt and enhancing its financial stability. These efforts are part of a broader strategy to strengthen the company’s balance sheet and focus on value-added services and intellectual property.

With these upgrades, Triumph is better positioned to achieve its multi-year financial targets. The company aims to continue improving its debt profile while expanding margins and generating free cash flow.

The recognition from Moody’s and S&P not only validates Triumph’s recent financial maneuvers but also sets a positive tone for its future endeavors. The stable outlook indicates confidence in the company’s ability to maintain its improved financial health and navigate market conditions effectively.

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