Moody's Ratings affirmed TTM Technologies, Inc.'s Ba2 corporate family rating and Ba2-PD probability of default rating, while revising the outlook to positive from stable. The ratings agency also affirmed the Ba1 rating on TTM's senior secured bank credit facility and the Ba3 rating on the company's senior unsecured debt.
The decision to move the outlook to positive reflects marked growth in both revenue and profitability, which Moody's attributed to strong demand across TTM's served markets. In particular, the agency emphasized elevated demand tied to AI-related data center computing and networking, along with continued strength in aerospace and defense end markets.
Moody's projects that TTM's revenues will approach the mid $4 billion range in 2026, up from the mid $2 billion range reported in 2024. That revenue trajectory is central to the agency's more optimistic view of the company's credit profile.
The ratings agency noted that the positive outlook also accounts for TTM's ability to maintain total financial leverage below 2.5x debt to EBITDA despite recent acquisition activity. Moody's referenced the company's announced intent to acquire Epiq Solutions for $1.1 billion on August 17, 2026, as well as the June 17, 2026 announcement of intent to acquire Swiss Technology Group AG and ILFA GmbH. According to Moody's, these deals have materially improved TTM's scale and diversification.
Moody's said TTM's Ba2 corporate family rating reflects predictable revenue streams coming from the aerospace and defense sector and the company's diversified exposure across end markets, factors that help to limit revenue volatility. The agency also pointed to TTM's conservative financial leverage profile and a sizeable cash balance, which together provide flexibility to support internal growth initiatives and further acquisitions.
Moody's outlined the factors that could lead to future rating changes. An upgrade would require the company to achieve greater business scale and diversification, consistent revenue growth and EBITDA margin expansion, and the maintenance of total financial leverage below 2.5x debt to EBITDA. Conversely, a downgrade could result if TTM experiences sustained declines in revenue or margins, or if total financial leverage remains above 4.0x debt to EBITDA.
These rating actions and outlook changes signal Moody's view that TTM's recent performance and strategic moves have strengthened its credit profile, while also establishing clear financial thresholds that will guide future rating decisions.