Moody's rates Park-Ohio notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Park-Ohio Industries Inc.'s proposed $200 million of new guaranteed senior subordinated notes due 2014.

The net proceeds of these proposed notes, along with borrowings under the company's revolving credit facility, will be applied toward the repayment of Park-Ohio's existing 9¼% unguaranteed senior subordinated notes due December 2007.

Moody's affirmed all of Park-Ohio's existing ratings, including its Caa1 rated $200 million of 9¼% unguaranteed senior subordinated notes due December 2007, B2 senior implied rating and B3 senior unsecured issuer rating, and maintained the stable outlook.

The ratings continue to reflect Park-Ohio's high leverage, along with the lagged effect of the company's margin improvement relative to the rate of recent revenue growth.

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