Moody's rates HD Supply notes Caa2

Moody's Investors Service said it upgraded HD Supply, Inc.'s corporate family and probability of default ratings to B3 from Caa1.

Moody's said this action results from its expectations that HD Supply will refinance a significant portion of its senior subordinated notes due 2015, effectively extending the remainder of its maturities by at least two years to 2017.

In a related rating action, Moody's upgraded all of HD Supply's debt instrument ratings by one notch and assigned a Caa2 rating to the company's proposed senior subordinated notes due 2021.

Proceeds from the note issuance will be used to refinance about $600 million of HD Supply's $889 million senior subordinated notes due 2015 and to pay $50 million in accrued interest and related fees and expenses.

The outlook is stable.

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