Moody's assigns Coinmach loan B2

Moody's Investors Service said it assigned a B2 rating to Coinmach Corp.'s proposed amended secured credit facility and has affirmed parent company Coinmach Service Corp's B2 corporate family rating and Caa1 senior secured notes due 2024.

Affected ratings include Coinmach Services' $130 million senior secured notes due 2024 at Caa1 and Coinmach's $570 million senior secured term loan and $75 million senior secured revolver, both at B2.

The rating affirmation reflects Moody's belief that the incremental benefit from reduced interest expense associated with the refinancing and additional liquidity from the proposed secondary stock offering will not materially improve Coinmach's credit profile given still relatively high financial leverage, modest retained cash flow generation and high fixed charge burden due to significant share dividends associated with the company's income deposit securities issued last year.

The ratings continue to reflect Coinmach's steady operating performance, the company's long term contract base and high retention rate and expected free cash flow generation, which Moody's anticipates will continue to benefit from reduced capital expenditures.

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