Moody’s rates Capstone revolver B2

Moody's Investor's Service said it affirmed the ratings on Capstone Logistics Acquisition, Inc., including the B3 corporate family rating and the B3-PD probability of default rating.

The agency also affirmed the B2 rating on the first-lien senior secured term loan as well as the Caa2 rating on the second-lien senior secured credit facility.

Moody's also assigned a B2 rating to the new first-lien senior secured revolver. The B2 rating on the existing first-lien senior secured revolver will be withdrawn upon close.

The outlook was changed to stable from negative.

The agency said the stable outlook reflects expectations that Capstone will generate modest sales growth along with a generally stable operating performance during 2018.

Moody’s said the outlook also incorporates an expectation that headwinds stemming from the Pinnacle acquisition of 2015 will begin to moderate over the next 18 months, although the agency said it believes these earnings pressures will remain for at least the balance of 2018.

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