Moody's may downgrade Insurance Auto Auctions

Moody's Investors Service said it placed Insurance Auto Auctions, Inc.'s ratings under review for possible downgrade following the recent announcement that the company had failed to file its 10-Q report for the third quarter of 2006 with the Securities and Exchange Commission on a timely basis.

Ratings placed on downgrade review include the company's $50 million senior secured revolver due 2011, rated Ba3 (LGD2, 23%); $205 million senior secured term loan B due 2012, rated Ba3 (LGD2, 23%); $150 million 11% senior unsecured notes due 2013, rated Caa1 (LGD5, 79%); speculative grade liquidity rating, rated SGL-2; and B2 corporate family and probability-of-default ratings.

Moody's said the company may resolve the issue imminently.

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