Rating Action: Moody'south affirms IDEX'southward ratings, senior unsecured at Baa2; stable outlookGlobal Credit Research - 09 December 2021New York, December 09, 2021 -- Moody's Investors Service, ("Moody's") today affirmed the Baa2 issuer and senior unsecured ratings of IDEX Corporation (IDEX) and maintained the stable outlook.The Baa2 rating affirmation reflects Moody's view that IDEX'south strong niche market positions will continue to drive solid and consistent results, despite occasional periods of weak organic growth.The stable outlook anticipates 5%+ organic summit-line growth through at to the lowest degree 2022 and an EBITDA margin around 28%, with pricing actions and productivity initiatives helping to offset supply chain, labor and inflationary cost headwinds. Moody's too expects the company to maintain robust liquidity, including gratis cash flow that comfortably exceeds $300 one thousand thousand over the next 12-18 months. The stable outlook incorporates Moody's expectation that the company will maintain a counterbalanced approach to debt-funded acquisitions and shareholder-friendly initiatives.Moody's took the following deportment:Affirmations:..Issuer: IDEX Corporation.... Issuer Rating, Affirmed Baa2....Senior Unsecured Notes, Affirmed Baa2Outlook Deportment:..Issuer: IDEX Corporation....Outlook, Remains StableRATINGS RATIONALEIDEX generates healthy EBITDA margins, which Moody's expects to remain between 27% and xxx% (including Moody'south standard adjustments) over the side by side year. The company's potent profitability is supported by a high percentage of customized or specialized products mainly in traditionally stable end markets, such as nutrient and beverage, pharmaceutical, water and wastewater and analytical instrumentation. Credit metrics should strengthen with improving order rates in primal cease markets, albeit amid an uneven macroeconomic recovery with the uncertain timing and lingering effects of the coronavirus pandemic. IDEX sells into diverse end markets and has a broad customer base with no concentration. Additionally, approximately 50% of revenue is generated outside the US.The rating also reflects IDEX'southward small-scale scale (revenue is roughly $two.7 billion), competing against larger well-capitalized and more diversified companies in its markets. The visitor has an acquisition-oriented growth strategy intended to build scale and telescopic, which could pb to periodic spikes in debt and button leverage outside expected levels of Moody's adjusted debt-to-EBITDA near/below 2x or dilute the margins. Moody'south anticipates that ongoing supply chain disruptions, forth with labor availability constraints and rising costs volition continue to exert margin pressures well into 2022. Nonetheless, these pressures could be partially beginning by incremental pricing and productivity initiatives.IDEX's solid liquidity profile is supported by good for you cash balances (nigh $800 million at September 30, 2021) and an $800 one thousand thousand revolving credit facility prepare to elapse in May 2024. The revolving facility had about $793 1000000 of availability every bit of Q3 2021, afterward netting posted letters of credit. Moody's expects free cash flow to exceed $325 one thousand thousand over the next year (last five-year average of about $300 million), also noting capital spending requirements are modest. There are no material debt maturities until June 2023 when the $100 million 3.22% senior unsecured notes mature. The credit facility provisions include requirements for a minimum interest coverage ratio greater than 3x and a maximum leverage ratio less than 3.5x. We expect IDEX to maintain comfortable headroom under these covenants through 2022. At that place are no fiscal covenants relating to the senior notes merely they are subject to cross-default provisions.FACTORS THAT COULD Atomic number 82 TO AN UPGRADE OR DOWNGRADE OF THE RATINGSRatings could exist upgraded with a meaningful increase in the revenue base and constructive management of the growth strategy without materially weakening the fiscal performance and credit metrics. This includes debt-to-EBITDA sustained comfortably below 2x. The maintenance of bourgeois financial policies related to shareholder-friendly initiatives and the leverage appetite for acquisitions would also be an important consideration for an upgrade.The ratings could exist downgraded with expectations of debt-to-EBITDA approaching ii.5x or free cash catamenia-to-debt falling below 20%. An EBITDA margin trending towards 20% or meaning erosion in the liquidity position could result in negative rating pressure.The primary methodology used in these ratings was Manufacturing published in September 2021 and available at https://world wide web.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1287885. Alternatively, please see the Rating Methodologies folio on www.moodys.com for a re-create of this methodology.IDEX Corporation is a diversified applied solutions company specializing in fluid and metering technologies, wellness and scientific discipline technologies, and fire, safety and other diversified products built to customers' specifications. IDEX designs and produces liquid pumps, flow command systems/meters, small-scale volume air compressors and measuring instruments too as diverse rescue tools and lifting bags. Net sales were approximately $two.vii billion for the twelve months ended September 30, 2021.REGULATORY DISCLOSURESFor further specification of Moody'south fundamental rating assumptions and sensitivity analysis, meet the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody'south Rating Symbols and Definitions tin be establish at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a programme, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or notation of the same series, category/form of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating activeness on the support provider and in relation to each detail credit rating action for securities that derive their credit ratings from the back up provider's credit rating. For provisional ratings, this annunciation provides certain regulatory disclosures in relation to the conditional rating assigned, and in relation to a definitive rating that may exist assigned subsequent to the terminal issuance of the debt, in each instance where the transaction structure and terms have non changed prior to the assignment of the definitive rating in a manner that would have afflicted the rating. For farther information please run into the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any afflicted securities or rated entities receiving straight credit support from the main entity(ies) of this credit rating action, and whose ratings may change every bit a result of this credit rating action, the associated regulatory disclosures volition be those of the guarantor entity. Exceptions to this approach be for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing ecology, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The Global Calibration Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates exterior the European union and is endorsed by Moody'south Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.iv paragraph three of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Farther information on the EU endorsement status and on the Moody'southward part that issued the credit rating is bachelor on www.moodys.com.The Global Calibration Credit Rating on this Credit Rating Annunciation was issued past one of Moody'south affiliates exterior the UK and is endorsed by Moody's Investors Service Limited, I Canada Square, Canary Wharf, London E14 5FA nether the police force applicable to credit rating agencies in the UK. Further information on the Uk endorsement status and on the Moody's function that issued the credit rating is available on www.moodys.com.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody'southward legal entity that has issued the rating.Please run into the ratings tab on the issuer/entity folio on www.moodys.com for boosted regulatory disclosures for each credit rating. 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