Moody's rates Goodman notes B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating and a B2 probability of default rating to Goodman Networks Inc. and a B2 (LGD3, 47%) rating to the company's new $225 million of senior secured notes due 2018.

The outlook is stable.

The company plans to use the borrowings to refinance currently outstanding debt, repurchase equity held by minority shareholders and for general corporate purposes.

Goodman's ratings consider the relatively high business risks associated with the small scale of its business of providing outsourced engineering and infrastructure services primarily to large communications and technology companies in the United States, the agency said.

The ratings also reflect Goodman's significant customer concentration, key-man and project execution risks and exposure to the capital expenditure cycles of its customers, the agency added.

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