Moody’s rates Toys ‘R’ Us loans

Moody's Investors Service said it took several rating actions for Toys ‘R’ Us, Inc., including assigning ratings to two new debt issues, a proposed $350 million senior secured FILO term loan rated Ba3 and a proposed $1,025,000,000 senior secured term loan rated B2, both to be issued by Toys ‘R’ Us-Delaware, Inc.

The B3 corporate family rating was affirmed and the outlook remains negative.

Moody’s said the B2 rating on the proposed $1,025,000,000 senior secured term loan reflects the added protection it receives from the guaranty of Toys ‘R’ Us Property I, LLC. The downgrade of the existing Toys-Delaware term loans and the Toys-Inc. debentures reflects the new positioning of the Ba3-rated proposed $350 million FILO term loan due its improved collateral support.

The company's liquidity remains good, as reflected in the SGL-2 rating, and will be improved by the planned new debt issuances and repayments, the agency said.

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