Moody’s drops Filtration facility to B1

Moody's Investors Service said it affirmed Filtration Group Corp.’s B2 corporate family rating and B2-PD probability of default rating following the company's announced acquisitions of Purafil, Inc. and Kaydon Custom Filtration for about $90 million, to be funded with an add-on to its existing first-lien term loan.

The agency also downgraded the rating of the company's first-lien credit facility – term loan and revolving credit facility – from B1 to B2.

The Caa1 rating on the company's second-lien term loan was affirmed.

The outlook is stable.

Moody’s said the credit facility downgrade reflects a shift in the proportional mix of the company's debt structure with first-lien secured debt increasing due to the acquisition funding and junior debt declining due to scheduled maturities of subordinated notes (not rated).

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