Moodys: RGIS Services loans B2

Moody's Investors Service said it assigned B2 ratings to a new $60 million senior secured revolver due 2017 and a new $215 million senior secured term loan due 2017 offered by RGIS Services, LLC.

The agency said it also assigned B2 ratings to a senior secured term loan due 2016 proposed as an amendment and extension of an existing term loan due 2014.

The rating on the non-extended portion of the existing term loan due 2014 has been lowered to B2 from Ba3 to reflect the preponderance of senior secured debt in the capital structure post-transaction.

Concurrently, Moody's said it affirmed RGIS's B2 corporate family rating and lowered the probability of default rating to B3 from B2. The outlook remains stable.

Moody's said RGIS's B2 corporate family rating is constrained by continued pricing pressure on domestic inventory counting services and incremental investments to fund growth initiatives, resulting in a steady contraction in margins.

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