Moody's rates Transaction Network loans

Moody's Investors Service rated the senior secured bank facilities of Transaction Network Services Inc. Ba3 and affirmed the senior implied and senior unsecured issuer ratings, which were moved to the publicly traded parent, TNS Inc.

The outlook is stable.

Moody's rates TNS' $65 million senior secured term loan maturing 2008 and $30 million senior secured revolving credit facility maturing 2009 Ba3 and affirmed the senior implied rating at Ba3 and it senior unsecured issuer rating at B1.

Moody's said the ratings recognize the risks inherent in TNS' business despite the improvement to its capital structure as a result of its equity issuance and debt reduction. TNS' ratings are constrained by high revenue concentration among the company's top five customers, long-term concerns regarding falling per-transaction revenues in TNS' domestic point of sale segment leading to potential margin compression and the high level of intangibles relative to assets.

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