Moody's may cut Heating Finance (Baxi)

Moody's Investors Service said it placed all ratings of Heating Finance plc, which is the direct owner of Baxi Holdings Ltd. Heating Finance plc under review for possible downgrade.

Under review are Baxi's Ba3 senior implied rating, B2 rated 7 7/8% mezzanine notes due 2014, Ba3 rated senior secured credit facilities and B3 issuer rating.

Moody's said the review is prompted by the company's announced intention to acquire the heating business of Corpacion Empresarial Roca SA for cash consideration of €200 million.

Baxi has not yet finalized its financing plans for the acquisition, however the review for downgrade reflects Moody's concern that the transaction may weaken the company's credit profile in terms of credit metrics.

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