Moody's ups StoneMor, gives notes B3

Moody's Investors Service said it upgraded StoneMor Inc.'s corporate family rating to B3 from Caa1 and upgraded the probability of default rating to B3-PD from Caa2-PD. Moody's assigned a B3 rating to StoneMor's planned senior secured notes due 2029. The speculative grade liquidity rating was upgraded to SGL-2, indicating good liquidity.

“The upgrade of StoneMor's CFR to B3 reflects the company's continued improvements in operating performance driven by increased sales productivity and successful cost-cutting measures resulting in at least $50 million of run-rate savings,” Moody’s said in a press release.

Proceeds will be used to fully repay StoneMor's senior secured notes due 2024, pay associated transaction fees and expenses and add cash to the balance sheet. The rating for the senior secured notes due 2024 will be withdrawn once repaid. The company is also expected to enter into an unrated $40 million super senior secured revolving credit facility after closing the bond offering, which is expected to be undrawn at close.

The outlook remains stable.

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