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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Hubbell Incorporated
Global Credit Research - 27 Aug 2020
New York, August 27, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Hubbell Incorporated and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review 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.
Hubbell Incorporated's Baa1 senior unsecured rating benefits from a diversified revenue base servicing multiple industries in its two business segments, Electrical and Utility Solutions. This will help mitigate the effects of the coronavirus driven demand shock in industrial, energy and building markets in 2020. Moody's expects Hubbell will maintain its strong competitive position as one of the larger North American providers of electrical and lighting products, helping it maintain strong profit margins and robust cash generation. Nonetheless, credit metrics will remain weaker than normal in 2020 and into 2021 due to the effects of COVID-19 on demand and Hubbell's supply chain.
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 Manufacturing Methodology published in March 2020. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU 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.
David Berge, CFA Senior Vice President Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Russell Solomon Associate Managing Director Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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