Moody's rates Belfor loan Ba3

Moody's Investors Service said it assigned a Ba3 (LGD3, 41%) rating to Belfor USA Group, Inc.'s proposed $75 million add-on term loan due April 2019 and affirmed its senior secured bank credit facilities at Ba3 (LGD3, 41%). Belfor Holdings, Inc.'s B1 corporate family rating and B1-PD probability of default rating were also affirmed, and the outlook is stable.

Proceeds of the new loan will be applied to reduce the balance on the company's revolving credit facility.

The agency said Belfor's B1 corporate family rating reflects the expectation that its Moody's-adjusted leverage, which was 5.0 times for 2013, will decline to the 4.5 times to 4.7 times range over the course of 2014 as the company reduces its working capital with insurance reimbursement proceeds.

The company benefits from its large scale ($1.3 billion revenue base) and geographic diversification, operating in North America, Europe and Asia, Moody's said.

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