Moody's Investors Service on Monday raised its outlook on home health care equipment supplier Invacare Corp. to "positive" from "stable" and upgraded some company debt ratings.
Moody's said the outlook change reflects Invacare's "considerable debt repayment, proven success with restructuring and cost-cutting initiatives and significant improvement in credit metrics over the last year."
"Further, the positive outlook reflects our view that Invacare is preparing itself well to manage expected reimbursement pressures by reducing leverage and interest expense and continuing to pursue cost savings opportunities," said a statement from the ratings service.
Moody's also upgraded the ratings of Invacare's senior secured revolving loan to Ba1 from Ba2 and the rating on 9.75 percent senior notes due in 2015 to B1 from B2.
It also affirmed the company's B1 corporate family rating and probability of default ratings and the B3 rating on senior subordinated convertible notes due in 2027.
All those ratings are non-investment or "junk" grade, but Ba1 is the highest level non-investment grade.
Invacare, which is based in Elyria, Ohio, makes wheelchairs, crutches and motorized scooters. Its stock rose 39 cents to $25.94 in late Monday morning trading.