Moody's rates Viking loans B2

Moody's Investors Service said it assigned first-time ratings for Viking Acquisition, Inc. including B2 corporate family and probability of default ratings and an SGL-3 speculative grade liquidity rating.

Moody's also assigned a Ba3 rating (LGD 2, 26%) to the company's proposed $50 million senior secured revolving credit facility due 2015 and $300 million senior secured term loan B due 2016.

The outlook is stable.

Proceeds of the proposed bank facilities will be used to fund Viking's acquisition of the Global AutoCare business from Clorox Co.

Vikings' ratings reflect the company's high leverage, relatively small scale, weak organic growth and limited product diversification in the highly fragmented and competitive auto-care products business, Moody's said.

However, Viking's ratings benefit from the company's strong brand recognition, high profitability, low capital requirements, global distribution capabilities, likely minimal near-term debt reduction and adequate liquidity.

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