Moody's rates Crawford loans B1

Moody's Investors Service said it assigned a B1 corporate family rating to Crawford and Co. and a B1 rating to its expected $310 million senior secured credit facility, which will include a $235 million seven-year term loan B, a $50 million five-year revolving credit facility and a $25 million five-year synthetic letter-of-credit facility. The outlook is stable.

Proceeds from the facility are expected to be used to refinance Crawford debt and to fund the purchase of Broadspire Management Services, Inc.

The agency said the ratings are based primarily on Crawford's substantial financial leverage, which leads to a low level of financial flexibility, and marginal interest and fixed expense coverage. In addition, Crawford's profitability has been somewhat weak in recent years.

Helping to offset these risks is Crawford's status as a market leader in many of its specific lines of business and the company's excellent geographic diversification, enabling contracts with large multinational institutions and strong customer relationships with numerous large and small institutions in multiple lines of business.

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