Moody's rates Exova notes B3

Moody's Investors Service said it assigned a B2 corporate family and probability of default ratings to Exova Holdings Ltd. The agency also assigned a provisional B3 rating to the proposed £155 million senior unsecured notes due in 2018, which will be issued by the subsidiary Exova Ltd.

The proceeds will be applied toward debt reduction and support an extension of the company's debt maturity profile.

The outlook is stable.

The ratings reflect Exova's well established and diversified business position as one of the market leaders of laboratory-based testing services with a relatively high degree of performance resilience through the cycle evidenced in a track record of solid and stable profitability and cash generation levels, Moody's said.

The ratings are constrained by Exova's low absolute scale with revenues of about £221 million, the agency said, as well as its leverage, reflected in a pro-forma debt-to-EBITDA ratio of more than 6x at the end of 2009.

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