Moody's affirms Rockwood; outlook positive

Moody's Investors Service said it affirmed the debt ratings of Rockwood Specialties Group, Inc. (corporate family rating B1) and revised the outlook to positive from stable.

Moody's said it also assigned Ba2 ratings to Rockwood's proposed amended senior secured credit facilities, including its revolver and term loan facilities.

Among other changes, the amendment is designed to relax a leverage covenant and extend maturities by two years, the agency added, stating that this rating action reflects both the stable operating performance and the prospect for further meaningful debt repayment.

"The positive outlook reflects its assumption that excess free cash flow is likely to be used for debt reduction and that these proposed timely amendments to the senior credit facilities will, if approved, be a credit positive and improve liquidity." said Moody's analyst Bill Reed.

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