Moody’s: U.S. Security, Allied unaffected

Moody's Investors Service said the ratings at U.S. Security Associates Holdings, Inc. (B3 stable) and Allied Universal Holdco, LLC (B3 negative) are unaffected by the announced acquisition of U.S. Security by Allied Universal.

The agency said it views the transaction as a credit negative as it will likely result in continued high integration costs which will constrain cash flow generation at Allied Universal.

Moody’s said it expects all the debt at U.S. Security to be repaid as a part of the transaction.

“Specific terms of the transaction have not been announced. Thus, the capital structure, including any potential equity contribution from Allied Universal's owners Warburg Pincus and Wendel, the potential for synergies, the cash cost to achieve the synergies and the integration plan are all uncertain,” the agency said in a news release.

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