Moody's may upgrade Rent-Way

Moody's Investors Service said it placed Rent-Way, Inc.'s B3 corporate family rating and B3 $205 million 11 7/8% second-lien secured notes due 2010 on review for possible upgrade following the announcement that Rent-A-Center, Inc. intends to acquire complete ownership of Rent-Way.

The senior secured notes are redeemable at any time at the option of the company based on the equivalent Treasury yield, the agency noted.

During the review, the agency said it will consider the position of Rent-Way within Rent-A-Center's corporate structure, the outcome of the redeemable senior secured notes and preferred stock and the likelihood for post-transaction efficiencies and operating improvements, keeping in mind that Rent-A-Center has successfully integrated several previous acquisitions.

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