Moody's rates Americold notes Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating to Americold Warehouse Investment Portfolio LLC, a wholly owned subsidiary of Americold Realty Trust, and a Ba3 rating to the subsidiary's proposed 10-year senior secured notes.

The outlook is stable.

The proceeds from the issuance will be used to pay off a portion of the debt at Americold Warehouse's predecessor entity, Versacold.

The agency said the ratings reflect the company's nationally diversified portfolio of good quality temperature-controlled warehouses with a diverse tenant base and long-term customer relationships and benefit from moderate leverage - the net debt-to-EBITDA ratio was 4.1 times at the end of 2009 - and the expected static nature of the portfolio.

According to Moody's, key credit challenges for Americold Warehouse include relatively low EBITDA margins, the shorter-term nature of the warehouse contracts and a large proportion of month-to-month tenancy.

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