Moody’s keeps United Distribution on watch

Moody's Investors Service said it maintained United Distribution Group Inc.'s ratings under for review for upgrade in light of its definitive agreement to be acquired by SunSource, a subsidiary of STS Operating, Inc. (B2 negative).

This includes the Caa1 corporate family rating, Caa1-PD probability of default rating, United Central Industrial Supply, LLC's B3 rating on its senior secured first-lien credit facility and the Caa3 rating on its senior secured second-lien term loan.

United Distribution's ratings were initially placed under review to reflect the possibility that it would materially reduce its leverage through a proposed recapitalization, Moody’s said.

However, the recapitalization is no longer being pursued in light of the agreement with SunSource, therefore the review will now focus on the potential sale of the company, the agency explained.

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