Moody's ups UCI loans to Ba2

Moody's Investors Service said it raised UCI International, Inc.'s proposed bank credit facility to Ba2 (LG2, 18%) from Ba3 (LGD2, 28%), and affirmed its corporate family and probability-of-default ratings at B2 and its senior notes at B3 (LGD5, 73%).

This action follows the company's announcement that it revised the amount of the proposed senior secured term loan to $300 million from $450 million and correspondingly increased the amount of the proposed senior notes to $400 million from $250 million.

The outlook remains stable.

Moody's said the upgrade of the senior secured credit facilities incorporates its smaller size and the increase in debt junior to it, which improves the facilities' recovery prospects.

The lower amount of senior secured debt offsets the corresponding increased size of the proposed senior notes within the new capital structure, the agency noted.

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