Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of DXP Enterprises IncGlobal Credit Research - 21 Jan 2022New York, January 21, 2022 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of DXP Enterprises Inc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 19 January 2022 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.Key rating considerations are summarized below.DXP Enterprises' (DXP) B1 Corporate Family Rating (CFR) reflects its high exposure to cyclical end markets, modest scale for a distribution company with competitors having greater resources, single digit operating margins (driven by its distribution business model) and a history of acquisitions. While DXP has usually partially funded these acquisitions with equity, limiting the impact on leverage, there is potential for debt financed acquisitions in a consolidating industry. The CFR is supported by moderate leverage and good interest coverage credit metrics through industry cycles, the diversity of its customer base and product lines, broad North American presence, positive free cash flow generation through cycles, a steady contractual and fee-based business in the Supply Chain Services segment, and broad supplier base.This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.The principal methodology used for this review was Distribution & Supply Chain Services Industry published in June 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. James Wilkins Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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