Moody's rates AmeriTex, notes B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating and B2-PD probability of default rating to AmeriTex Holdco Intermediate, LLC and a B2 rating to its planned senior secured notes. The outlook is stable.

"AmeriTex's first-time B2 CFR reflects Moody's expectation of conservative financial policies, including low leverage and a strong margin profile," said Nirali Patel, Moody's analyst, in a press release. "The company will benefit from ongoing infrastructure spending and economic growth in Texas."

The notes benefit from a downstream guarantee from the parent company and upstream guarantees from all operating subsidiaries.

The notes will be used to refinance debt, fund a $70 million distribution to shareholders, and for general corporate purposes.

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