Moody's affirms Ahern

Moody's Investors Service said it affirmed the ratings of Ahern Rentals, Inc. following the company's recent announcement that it is increasing the size of its second-priority senior secured notes to $275 million from $200 million.

Proceeds from the upsized note issuance will be used to reduce outstandings under the company's $250 million revolving credit facility, the agency said.

Moody's said that the ratings affirmed include: corporate family rating at B2, second priority senior secured notes at B3 (LGD5, 73%) and speculative-grade liquidity rating at SGL-3.

The outlook remains stable.

Peter Doyle, an analyst with Moody's said: "Even though the terming out of some revolver oustandings will improve Ahern's funding structure and enhance liquidity, the company's leverage remains high and continues to support a B2 corporate family rating. The strong cyclical recovery in the non-residential construction sector and the resulting improvement in Ahern's operating performance, should result in Ahern becoming more solidly positioned within the current rating level."

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