Moody's rates Merger Sub loan B2

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to WBG-PSS Merger Sub Inc., the company acquiring the Payless ShoeSource retail business Collective Brands Inc.

The agency also assigned a B1 rating to the company' proposed $275 Million senior secured term loan. The outlook is stable.

Moody's said the assigned ratings are subject to the completion of the transaction and Moody's review of final documentation.

The agency said the B2 corporate family rating takes into consideration Payless' recent trends of positive same store sales and improved operating margins at its domestic business, which reflects the benefit of the company's decision to return to its value-oriented focus to drive sales with its core customer.

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