Moody's gives Alliant notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the planned $300 million senior unsecured notes due 2021 of Alliant Techsystems Inc.

All ratings were affirmed, including the Ba2 corporate family rating.

Proceeds from the notes, along with a new $1.96 billion bank credit facility, will help refinance Alliant Techsystems' existing bank debt and provide funding for the pending acquisition of Bushnell Group Holdings, Inc.

Moody's said the Ba3 rating assigned to the planned notes, one notch below the corporate family rating, reflects the secured bank facility's relatively large size and effectively senior position in the capital structure. The notes also benefit from presence of $550 million of subordinated debt.

The Ba2 corporate family rating balances high leverage for the rating level against growing revenue diversity, scale and anticipated cash flow that should help moderate credit statistics, the agency said.

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