Moody's cuts ROC notes

Moody's Investors Service said it affirmed ROC Finance LLC's B3 corporate family and probability of default ratings following the company's announcement that it plans on raising a proposed $150 million add-on to its existing $150 million senior secured term loan due 2017 and increasing its senior secured revolver commitment due in 2016 to $35 million from $25 million.

At the same time, Moody's lowered ROC's senior secured credit facility rating to B1 from Ba3 and its second-lien notes rating to Caa2 from Caa1 to reflect the increased amount of senior secured first-lien debt in ROC's capital structure as a result of the add-on.

Pursuant to Moody's loss given default methodology, the increase in the percentage of senior secured first-lien debt relative to ROC's total debt - from about 50% of total debt to 60% - reduces the recovery prospects of each class of debt, the agency said.

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