Moody's rates Iron Mountain notes B2

Moody's Investors Service said it assigned a B2 rating (LGD4, 69%) to the proposed $450 million senior subordinated notes due 2021 of Iron Mountain Inc.

The agency affirmed the B1 corporate family and probability-of-default ratings, Ba1 (LGD2, 13%) rating on revolving credit facility and term loan, and B2 (LGD4, 69%) rating on senior subordinated notes.

The outlook remains positive.

Proceeds will be used to repay debt balances under the $450 million 8 5/8% senior subordinated notes due 2013 and for general corporate purposes.

The corporate family rating is supported by the company's prominent position as a global leader in information storage and data protection, including its strategic expansion in the digital market in recent years, the agency said.

Ratings benefit from the company's historical revenue stability, geographical diversification and low customer concentration, the agency noted.

Ratings also reflect a capital-intensive business with most revenues deriving from paper document storage and related services which require significant customized physical space, Moody's said.

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