Moody's may downgrade Brickman

Moody's Investors Service said it placed the Brickman Group, Ltd.'s Ba3 corporate family and probability-of-default rating, Baa3 rating senior secured bank credit facility and Ba3 senior subordinated notes under review for possible downgrade following the announcement that CVIC Partners is selling its 36% stake in the company to Leonard Green Partners.

The review is prompted by the agency's concerns that the proposed transaction may lead to increased financial leverage at Brickman and will focus on the company's pro forma financial leverage, financial policy, and operating outlook.

The agency said the current Ba3 corporate family rating reflects concerns over the company's significant financial leverage that resulted from the company's last leveraged recapitalization in 2002, offset by Brickman's scale and leading position within the commercial landscape maintenance business, its robust recurring revenue stream, high customer renewal rates and healthy growth outlook.

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