Moody's rates Allied Security debt

Moody's Investors Service said it assigned a B2 rating to Allied Security Holdings' $50 million senior secured revolving credit facility and a B2 rating to the company's $210 million senior secured term loan B. Moody's also rated Allied's $175 million senior subordinated notes Caa1.

The outlook is stable.

Moody's said the ratings consider the company's increased leverage as a result of acquisitions, significant acquisition appetite, minimal tangible assets and a competitive business environment.

The ratings also reflect the company's impressive market position as one of the largest security service companies in the United States, diversified customer base, low revenue concentration and a product that is likely to be increasingly necessary throughout corporate America.

Current expectations for year-end 2004 leverage (debt to EBITDA) is at 6.5x but should improve to under 6x by the end of 2005.

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