Moody’s Ratings downgraded Crane NXT’s senior secured debt to Ba1 from Baa3 on Monday, citing a lower-than-anticipated recovery value for the company’s secured obligations.
The credit rating agency affirmed Crane NXT’s corporate family rating at Ba1, its probability of default rating at Ba1-PD, and left its speculative grade liquidity rating unchanged at SGL-1. Senior unsecured notes due 2048 were maintained at Ba2, while the outlook was kept stable.
The downgrade reflects the substantial secured debt in Crane NXT’s capital structure, which Moody’s said reduces expected recoveries for senior secured creditors. The company’s secured obligations include an $800 million revolving credit facility maturing in 2030, a GBP 269.5 million term loan A, a recently upsized EUR 480 million term loan B, and $200 million in senior secured notes, all ranking pari passu.
Crane NXT’s leverage is projected to moderate to around 2.7x debt/EBITDA by fiscal year-end 2027, according to Moody’s. The company is expected to generate approximately $200 million in free cash flow annually in 2026 and 2027. Moody’s noted Crane NXT’s strong liquidity position, with $231 million in cash on hand as of June 30, 2026, sufficient to cover obligations over the next 12 to 15 months.
The credit review comes ahead of Crane NXT’s planned acquisition of Antares Vision S.p.A, slated for March 31, 2026.
