Moody's lowers some RBS Global ratings

Moody's Investors Service said it has downgraded the corporate family rating of RBS Global, Inc., the parent company of Rexnord Corp., to B2 from B1 and assigned new long-term debt ratings in connection with its pending acquisition by an affiliate of Apollo Management.

The outlook has been changed to stable.

Moody's also assigned a SGL-2 speculative liquidity grade rating, reflecting good liquidity and expected covenant compliance. The outlook is stable.

Ratings assigned the $705 million senior secured bank credit facilities a B1 rating, the $420 million senior unsecured bonds due 2014 at B3 rating and the $420 million senior subordinated bonds due 2016 at Caa1 rating.

Moody's said the key drivers of the rating downgrade are the increased debt load assumed by RBS in connection with its acquisition by an affiliate of Apollo Management and the resulting deterioration in credit metrics.

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