Moody's rates Vutek loan

Moody's Investors Service said it has confirmed Vutek Inc.'s existing ratings and at the same time assigned B1 ratings to the company's new credit facility, which includes a $15 million senior secured revolver due 2009 and a $125 million senior secured term loan due 2010.

The outlook remains stable.

Moody's said the rating assignment reflects the company's increased debt leverage following the proposed recapitalization, sensitivity to economic cycles and outdoor advertising spending, potential threat from competing printing technologies, and weak balance sheet and thin asset coverage.

However, the ratings also consider the company's leading market position in the superwide format digital printer market, recurring revenues stream from ink and parts sales, a geographically diversified revenue base, a track record of good profit margins and cash flow generation.

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