Moody’s gives Epicor RSG CFR, loans B3

Moody's Investors Service said it assigned B3 corporate family rating and Caa1-PD probability of default rating to Epicor RSG US, Inc., the Retail Solutions Group business unit recently spun off from Epicor Software Corp.

The agency also assigned a B3 rating to the company's proposed first-lien credit facilities.

The outlook is stable.

Proceeds are being used to capitalize the new business entity, as well as fund a distribution to shareholders.

Moody’s said the B3 rating is driven by Epicor RSG's limited operating history and standalone financials, limited free cash flow expectations, and leverage.

The ratings also consider the company's strong niche position as a provider of software to mid-market retailers.

The agency estimates Epicor RSG's leverage at about 4.5 times as of the last 12-month period ending March 31.

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