Moody's: Radio System view stable

Moody's Investors Service said it stabilized the outlook for Radio Systems Corp. following its improved operating performance leading to significantly more flexibility under its financial covenants as well as a recent amendment to its credit facility, which removed a rating trigger.

The agency affirmed the corporate family rating at B2, probability-of-default rating at B3 and its senior secured credit facility rating at B2 (LGD3, 31% from 32%).

"The stabilization of the ratings outlook reflects Moody's view that the improvement in the company's operating performance should enable it to continue to comply with its financial covenants with ample cushion," Kevin Cassidy, a senior credit officer at Moody's, said in a written statement.

Ratings are constrained by modest scale, narrow product focus and exposure to consumer spending, the agency said.

Radio Systems' leading market position, well-recognized brand names and strong operating margins support ratings, the agency noted.

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