Moody’s assigns FleetCor CFR, loans Ba3

Moody's Investors Service said it assigned FleetCor Technologies Operating Co., LLC corporate family and probability of default ratings of Ba3 and Ba3-PD, respectively.

The agency also assigned Ba3 ratings to the $1 billion domestic revolver, $35 million international revolver, $1.7 billion senior secured term loan A and $1.05 billion senior secured term loan B.

The outlook is stable.

Proceeds will be used to help fund the acquisition of Comdata Inc. from Ceridan LLC for about $3.4 billion and to repay existing debt.

Moody’s said the corporate family rating reflects FleetCor's size and scale as a leading global provider of fuel cards with the largest U.S. fleet card network following the acquisition of Comdata. The rating is supported by a recurring transaction-based revenue model, which leads to steady and high levels of profitability (mid to high 30% operating margins) and annual free flow cash flow which should exceed $700 million by the end of 2015. Moody's expects adjusted pro forma leverage to decrease to below 4 times during 2015.

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