Moody's assigns Emeco notes, loan Ba3

Moody's Investors Service said it assigned a definitive B1 corporate family rating to Emeco Holdings Ltd.

At the same time, the agency assigned a definitive Ba3 rating to the $335 million senior secured notes due 2019 issued by Emeco Pty Ltd. and a definitive Ba1 on the A$50 million three-year senior secured revolving credit facility entered into by Emeco.

The outlook remains stable.

Emeco reduced the size of the senior secured notes issuance by around $30 million and the revolving credit facility size by around A$25 million. The lower issuance will improve Emeco's gross leverage, however, does not change Moody's expectations for Debt-to-EBITDA net of cash of around 3.0x - 3.5x in FY14, the agency said.

While the lower transaction size reduces the company's total available liquidity Moody's expects liquidity to remain adequate over the next 12 to 18 months.

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