Moody’s Ratings has affirmed Darling Ingredients Inc.’s (NYSE: DAR) corporate family rating at Ba1 and revised its outlook to stable from negative, reflecting the company’s improved financial and operational metrics.
The ratings agency also affirmed Darling Global Finance B.V.’s backed senior unsecured global notes at Ba2, while maintaining the speculative grade liquidity rating at SGL-2. Senior secured first-lien bank credit facilities were affirmed at Baa3, and senior unsecured global notes issued by Darling Ingredients remained at Ba2.
Moody’s noted a 75% increase in Darling’s EBITDA to approximately $1.6 billion for the 12 months ended July 4, 2026, up from $927 million in fiscal 2025. Adjusted debt-to-EBITDA improved to 2.0x from 3.2x at fiscal year-end 2025, with Moody’s expecting further declines below 2.0x over the next 12 months.
The company held $161 million in cash as of July 4, 2026, alongside roughly $1.3 billion of unused capacity on its $2.0 billion revolving credit facility. Management targets net debt at or below $3 billion by fiscal 2026 end, with projected free cash flow of about $1 billion over the next year.
Darling faces $500 million in debt maturities in April 2027 and $9 million in annual term loan amortization over the next 12 months. The outlook revision follows stronger renewable diesel margins after the Renewable Volume Obligation was finalized on April 1, 2026, alongside sustained demand for biofuel feedstocks and higher energy prices.
Moody’s highlighted Darling’s diversified revenue streams, including a 50% stake in Diamond Green Diesel, as well as steady demand for collagen products across North America, Europe and Asia. The ratings agency also noted the company’s geographic and end-market diversification as contributing factors to the improved credit profile.
