Moody’s rates Liberty Tire CFR Caa2, loan Caa1

Moody's Investors Service said it assigned a Caa2 corporate family rating and a probability of default rating of Caa2-PD to Liberty Tire Recycling Holdco, LLC.

The agency also assigned a Caa1 to the company's new senior secured term loan B, the proceeds of which will be used to repay existing credit facility borrowings, outstanding municipal bonds and a portion of the company's unrated senior secured second-lien paid-in-kind notes.

The outlook is stable.

These are initial ratings for Liberty Tire's revised capital structure following its out-of-court debt restructuring that took place in early March 2015. Moody's deemed the restructuring of the unsecured notes into the PIK notes and equity a distressed exchange and withdrew the company's ratings on March 31 because only a de-minimis amount of the unsecured notes remained.

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