Moody's rates WII loans B1, Caa1

Moody's Investors Service said it assigned B2 corporate family and probability-of-default ratings to WII Components, Inc., B1 (LGD3, 37%) ratings to its proposed $154 million guaranteed senior secured term loan B due 2013 and $25 million guaranteed senior secured revolver due 2013 and a Caa1 (LGD5, 89%) rating to its proposed $64 million guaranteed senior secured second-lien term loan.

The agency downgraded the corporate family and probability-of-default ratings of WII Components, Inc. to B2 from B2 and upgraded its $120 million 10% senior notes due 2012 to B1 (LGD3, 35%) from B2 (LGD4, 65%).

This concludes the review begun on Dec. 18 following the company's announcement that it will be acquired by Olympus Partners, and the outlook is stable.

WII's ratings consider the company's high leverage, anticipated low free cash flow generation relative to debt levels and customer concentration, Moody's said.

The ratings benefit from WII's variable cost structure based on the implementation of customer indexing agreements, the agency said.

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