Moody's gives Renfro loan B2

Moody's Investors Service said it assigned a B2 rating to the proposed $220 million senior secured term loan of Renfro Corp.

At the same time, Moody's affirmed the company's B2 corporate family and probability of default ratings.

The outlook is stable.

"Renfro's B2 corporate family rating has cushion to absorb the proposed dividend recap," Moody's analyst Mariko Semetko said in a news release.

Moody's said it considered Renfro's high leverage pro forma for the $75 million dividend recapitalization, but maintained its B2 corporate family rating and stable outlook based on the expectation that the company will deleverage over the next 12 to 18 months.

Furthermore, the rating assumes that the company will maintain relatively healthy interest coverage and good liquidity, the agency said.

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