Moody's Ratings Upgrades Holley's CFR to B2; Outlook Stable
Holley Performance Brands (NYSE:HLLY) (Holley), a leader in automotive aftermarket performance solutions, today announced that Moody's Ratings (Moody's) upgraded Holley's corporate family rating (CFR) to B2 from B3, probability of default rating to B2-PD from B3-PD and senior secured ratings to B2 from B3, noting that the outlook remains stable and the speculative grade liquidity (SGL) rating is unchanged at SGL-2.
Moody's highlighted that the rating upgrade and stable outlook reflect their expectation that Holley will maintain healthy profitability and moderate financial leverage while generating solid free cash flow over the next 12 – 18 months. Moody's report states, "Despite revenue headwinds persisting in 2024, Holley has executed on operational initiatives to improve its earnings and free cash flow, which the company used to repay debt."
"We continue to make progress on our financial priorities. Our balance sheet is continuing to get stronger and our free cash flow remains robust," stated Jesse Weaver, CFO of Holley Performance Brands. "The recent upgrades from both Moody's and S&P affirm that the strides we've made financially are acknowledged by leading rating agencies. We're committed to staying the course on our strategy of decreasing debt, enhancing profitability, and generating strong free cash flow."
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Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties, and other important factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including but not limited to Holley's ability to (1) successfully design, develop, and market new products, (2) maintain and strengthen demand for our products, (3) attract new customers in a cost-effective manner, (4) expand into additional consumer markets, and (5) and the other risks and uncertainties set forth in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission ("SEC") on March 14, 2024, and in any subsequent filings with the SEC.
About Holley Performance Brands
Holley Performance Brands (NYSE:HLLY) leads in the design, manufacturing and marketing of high-performance products for automotive enthusiasts. The company owns and manages a portfolio of iconic brands, catering to a diverse community of enthusiasts passionate about the customization and performance of their vehicles. Holley Performance Brands distinguishes itself through a strategic focus on four consumer vertical groupings, including Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, ensuring a wide-ranging impact across the automotive aftermarket industry. Renowned for its innovative approach and strategic acquisitions, Holley Performance Brands is committed to enhancing the enthusiast experience and driving growth through innovation. For more information on Holley Performance Brands and its dedication to automotive excellence, visit https://www.holley.com.
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