Moody’s rates Belfor loans Ba3

Moody’s Investors Service said it assigned Ba3 ratings to the Belfor Holdings, Inc.’s proposed $200 million revolving credit facility and $420 million proposed term loan facilities, consisting of a $150 million term loan A and $270 million term loan B.

Both tranches are secured by a first-lien on Belfor’s assets and stock of its subsidiaries, the agency said.

The agency said it affirmed Belfor’s B1 corporate family rating and B1-PD probability of default rating.

Belfor USA Group, Inc.’s senior secured bank credit facility has a Ba3 (LGD 3) rating and its senior secured term loans rating is rated Ba3 (LGD 3).

The outlook is stable.

The proceeds will be applied to primarily refinance the company’s outstanding term loans and revolver, Moody’s said.

The ratings are supported by the company’s large scale, geographic diversification and leadership position within its industry, the agency said.

Belfor leads the highly competitive restoration services industry, where few large operators exist, Moody’s said.

The ratings also reflect Belfor’s relatively high leverage for the rating category and exposure to foreign-exchange headwinds, the agency said.

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