Moody's downgrades Intergraph

Moody's Investors Service said it downgraded Intergraph Corp.'s corporate family rating to B2 from B1, probability of default rating to B2 from B1, $75 million senior secured revolving credit facility to B1, LGD3, 39% from Ba3, LGD3, 33%, $352 million senior secured first-lien term loan to B1, LGD3, 39% from Ba3, LGD3, 33% and $200 million senior secured second-lien term loan to Caa1, LGD6, 90% from B3, LGD5, 86%.

The agency also said it assigned a B1 (LGD3, 39%) rating to a new incremental $300 million first-lien term loan.

The outlook is stable.

The downgrade reflects Intergraph's increased debt leverage from incremental debt issuance as it pursues an aggressive dividend payout, Moody's said.

The proposed dividend payout will increase debt leverage by 1.6x, to about 5.2x, the agency said.

Moody's noted that the payout is in addition to the $142 million dividend payout the company made in September 2009.

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