Moody's keeps Reddy Ice on review

Moody's Investors Service said it intends to keep the credit ratings of Reddy Ice Holdings, Inc. on review for possible downgrade following the company's announcement that federal officials executed a search warrant at its corporate office in Dallas on Wednesday. Reddy Ice said the execution of the search warrant was directed by the Antitrust Division of the U.S. Department of Justice in connection with an investigation of the packaged ice industry. The company's board of directors has formed a special committee of independent directors to conduct an internal investigation.

The ratings were originally placed on review on July 3, 2007 following the company's announcement that it entered into an agreement to be acquired by GSO Capital Partners in a transaction valued at $1.1 billion.

Although the merger agreement was terminated on Jan. 31, Moody's kept the ratings on review for possible downgrade and attributed the decision to weakening credit metrics in 2007 and uncertainty as to future business strategy and financial policies.

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