Moody's Investors Service upgraded its debt ratings on Celestica Inc., a technology and engineering services provider, by one notch within junk territory after the company reduced its outstanding debt and improved its liquidity and cash flow.
Moody's raised Celestica's corporate family and probability-of-default ratings to "Ba2" from "Ba3," leaving them two notches below investment grade.
"We expect fairly material improvement in leverage and credit metrics following the company's retirement of its remaining tranche of debt, consisting of $223 million outstanding senior subordinated notes due 2013," Moody's said in a statement.
The rating agency withdrew its rating on those 7.625 percent senior subordinated notes after the company used cash on hand to redeem them.
Celestica, which is based in Toronto, Canada, helps manufacturers manage their supply chains, production, performance and time to market with a range of analysis and services.