Moody's rates Fairmount Minerals loans B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B2 probability of default rating to Fairmount Minerals, Ltd., along with B1 ratings to the company's anticipated $775 million senior secured credit facilities, which include a $75 million revolving credit facility, $150 million term loan A and $550 million term loan B.

The outlook is stable.

The ratings balance the company's revenue volatility, modest scale, limited product line and end-market diversification against the company's above-average operating margins, high barriers to entry, large base of proven mineral reserves and moderate debt leverage, Moody's said.

The stable outlook presumes that the company will carefully balance its leverage and other credit metrics with its acquisition strategy, primarily focusing on modestly sized tuck-in acquisitions that build upon its core strengths, the agency said.

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