Moody's: Filtration loans B1, Caa1

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Filtration Group Corp.

The agency also assigned B1 ratings to the proposed first-lien revolving credit facility and term loan, and a Caa1 rating to the proposed second-lien term loan.

The outlook is stable.

Proceeds will be combined with new equity to refinance outstanding Filtration Group debt and fund the purchase of Porex Holdings.

Moody's said the B2 corporate family rating is driven by the Filtration Group's elevated initial leverage (pro forma adjusted debt/EBITDA of roughly 6.5x), modest scale (just over $700 million revenue), interest coverage (1.9x EBITA to interest) and cash flow (about 9% funds from operations to adjusted debt).

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