Moody’s assigns Michael Baker CFR B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Michael Baker Holdings LLC and withdrew the B2 corporate family rating and B2-PD probability of default rating of Michael Baker International, LLC.

All instrument ratings of the corporate family have been affirmed.

The relocation of the ratings reflects the April issuance of $150 million pay-in-kind notes due 2019 at Michael Baker, the corporate family's highest ranking entity.

Moody’s said the B2 corporate family rating balances high financial leverage (about 6x pro forma for the April 2014 PIK note issuance), integration risks and limited performance visibility from the company's rapid growth through acquisition, against a good backlog level.

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