Moody's rates US Foods notes Caa2

Moody's Investors Service said it assigned a provisional Caa2 rating to US Foods, Inc.'s proposed upsized senior unsecured notes.

At the same time, Moody's affirmed all other ratings, including the B3 corporate family rating, and continued the stable outlook.

"The proposed facility aids liquidity by providing funds to fully repay the $702.5 million term loan maturing July 2014, and effectively extending $350 million to 2019 from 2014, however it should be noted that interest costs rise such that coverage is negatively impacted," Moody's senior analyst Charlie O'Shea said in a news release.

"Moody's notes the potential upgrade to B2 of the senior secured term loan is largely reliant upon the proposed $350 million increase in notes," O'Shea added in the release.

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