Moody's rates Toys 'R' Us loans B1

Moody's Investors Service assigned a B1 rating to the new senior secured term loans of Toys "R" Us Delaware, Inc. and affirmed all other ratings.

The outlook remains negative.

Ratings assigned include the $200 million senior secured term loan maturing 2008 at B1 and $800 million senior secured term loan maturing 2012 at B1.

Ratings affirmed include the 8.75% debentures due 2012 at B2, Toys "R" Us, Inc.'s corporate family rating at B2, senior unsecured debt rating at Caa2 and speculative grade liquidity rating of SGL-3, and TRU 2005 RE Holding Co. I LLC's senior unsecured credit facility at B2.

Moody's said the B2 corporate family rating balances the company's solid franchise, particularly Babies "R" Us, with credit metrics that are weak given the increased debt resulting from 2005's leveraged acquisition, with debt/EBITDA assuming Moody's standard analytic adjustments of more than 8 times.

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