Moody's rates Hudson's Bay loan B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Hudson's Bay Co.

Moody's also assigned a B1 rating to the proposed C$1.9 billion secured term loan due 2020 as well as a SGL-2 speculative grade liquidity rating.

The outlook is stable.

The B1 rating assigned to the proposed secured term loan reflects its second-lien position on the company's accounts receivable and inventory (the C$750 million and $950 million asset based revolvers will have a first lien on these assets in Canada and the U.S.) and the modest level of junior capital from the company's expected offering of $400 million of senior unsecured notes. The term loan B will have a first lien on all other assets of the company in the U.S. and Canada, Moody's said.

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