Moody's: Associated Asphalt loans B2

Moody's Investors Service said it assigned B2 corporate family rating and B3 probability of default rating to Associated Asphalt Partners, LLC. Concurrently, Moody's assigned B2 ratings to the proposed $280 million senior secured credit facilities, which include a $90 million revolving credit facility maturing 2018, a $170 million term loan B and a $20 million delayed draw term loan due 2019.

The outlook is stable.

Moody's said Associated's ratings are constrained by its small scale, relatively low margins, concentrated supplier base, integration risk, limited end-markets and geographic diversity, and its exposure to weak and volatile construction activity.

Additionally, low levels of free cash flow limits Associated's ability to delever. Moody's said it expects the company will continue to pursue acquisition opportunities, presenting acquisition and integration risks.

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