Moody’s rates RSI Home notes B1

Moody's Investors Service said it affirmed RSI Home Products, Inc.'s B1 corporate family rating and B1-PD probability of default rating following the company's recent announcement that it intends to refinance its existing debt and to pay a $100 million cash dividend to its stockholders.

In a related action, the agency assigned a B1 to the company's proposed $575 million second-lien senior secured notes due 2023.

The outlook is stable.

Moody's affirmed RSI's ratings because resulting debt credit metrics still support the current ratings following the $50 million increase in balance sheet debt. Further, the agency expects RSI to generate free cash flow throughout the year, replenishing cash on hand and improving the company's liquidity profile.

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