S&P rates Reddy Ice's loan B+, notes B-

Standard & Poor's rated Reddy Ice Group Inc.'s, formerly known as Packaged Ice Inc., proposed $170 million senior secured credit facilities at B+ and proposed $150 million subordinated notes due 2011 at B-. The rating outlook is stable.

Proceeds from the new credit facilities and notes offering will be used as part of the financing for Reddy Ice's proposed merger with a new entity formed by Trimaran Capital Partners and Bear Stearns Merchant Banking. The new revolver will be used for general corporate purposes.

The credit facility is comprised of $35 million five-year revolver due 2008, which includes a $12 million sublimit for letters of credit and a $5 million sublimit for swing-line loans, and a $135 million six-year term loan due 2009.

"The speculative-grade ratings on Reddy Ice Group Inc. continue to reflect its narrow product focus, its participation in the highly fragmented and competitive packaged ice industry, and its leveraged financial profile," said Standard & Poor's credit analyst David Kang. "Somewhat offsetting these factors are the company's strong EBITDA margins, established infrastructure, and solid regional market positions."

Fitch withdraws Orbital Sciences' ratings

Fitch Ratings affirmed and simultaneously withdrew Orbital Sciences Corp.'s B+ senior secured credit facility rating and B second priority secured notes rating.

Moody's ups Universal Hospital Services ratings

Moody's Investors Service upgraded the ratings for Universal Hospital Services, Inc., including the $87.5 million senior secured credit facilities due 2004 to Ba3 from B1 and the $135 million 10.25% senior unsecured notes due 2008 to B2 from B3. The rating outlook is stable.

The upgrade follows the ongoing improvements in operating trends, which have resulted in a strengthening of the company's credit profile. Furthermore, the company has become the leading provider of medical equipment outsourcing, Moody's said.

Also reflected in the ratings is the company's high leverage, modest interest coverage, weak free cash flow, capital intensive nature of the company's business model, limited liquidity, and the high reliance on the hospital and nursing home sectors, both of which are highly dependent on a somewhat uncertain reimbursement environment, Moody's added.

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