Moody’s rates RBS notes B3, facilities Ba2

Moody's Investors Service said it assigned a B3 rating to RBS Global, Inc.'s proposed new $500 million senior unsecured notes and affirmed its B1 corporate family rating and B1-PD probability of default rating.

Note proceeds and about $300 million of the balance sheet cash will be used to reduce outstandings on the company's senior secured term loan.

The Ba3 rating on the company's existing senior secured term loan and revolver are being withdrawn.

Moody's also said it a Ba2 rating to the amended revolver and term loan maturing 2023 and 2024, respectively.

The outlook is stable and reflects the expectation for low profit growth and good free cash flow generation.

Moody’s said the assignment of a B3 rating to RBS' unsecured notes reflects its ranking behind the company's amended term loan and revolver.

The affirmation on corporate family rating incorporates the improvement in the company's performance in the last two quarters as evidenced by its improved leverage metrics and higher margins, the agency added.

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