Moody's rates West Corp notes B3

Moody's Investors Service said it assigned a B3 rating (LGD5, 76%) to West Corp.'s proposed $650 million of unsecured notes.

The agency affirmed the B2 corporate family and probability-of-default ratings, the SGL-2 speculative grade liquidity rating, senior secured term loan and revolving credit facility at Ba3 (LGD2, 25%), senior notes due 2018 at B3 (LGD5, 76%) and $450 million senior subordinated notes due 2016, Caa1 (LGD6, 94%).

The outlook is stable.

Proceeds will be used fund the repurchase of the senior unsecured notes due 2014.

The B2 corporate family rating reflects significant financial leverage, revenue declines in some agent-based service lines, pricing pressures and technology risks in automated service lines, the agency said.

Ratings are supported by the company's scale and leading market positions, track record of revenue and profitability growth in automated service lines, and stable financial performance during 2009 and 2010 despite pressures from a difficult macro environment, the agency noted.

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