Moody's rates Rayovac loan B1

Moody's Investors Service said it assigned B1 ratings to Rayovac Corp.'s senior secured term loan C facilities, affirmed the company's existing ratings, and revised the outlook on all ratings to positive from stable.

More specifically, Moody's assigned a B1 rating to the $257 million senior secured term loan C facility due 2009 and €131.75 million senior secured term loan C facility due 2009. Moody's also affirmed the company's senior implied rating at B1, $120 million senior secured revolver due 2008 at B1, €40 million senior secured revolver due 2008 at B1, $350 million 8.5% senior subordinated notes due 2013 at B3, and senior unsecured issuer rating at B2.

Borrowings under the term loan C facilities were used to refinance Rayovac's A and B loans earlier this year.

Moody's said the affirmation of Rayovac's ratings and the revision of its outlook to positive from stable reflect the company's strong operating performance through third quarter 2004 (ended June 2004), which in combination with savings from the Remington integration should strongly position the company for meaningful debt reduction into fiscal 2005. Further, Moody's noted that Rayovac has reduced its exposure to rising interest rates through its credit facility refinancing, which lowered its borrowing margins, and through substantial debt repayment using existing cash balances and free cash flow.

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