Moody's affirms Phibro

Moody's Investors Service said it affirmed the B2 corporate family and probability of default ratings of Phibro Animal Health Corp., and the B3 rating on the company's 9¼% unsecured notes following the proposed $25 million add-on to the original $275 million issue amount.

The proceeds will be used for general corporate purposes and acquisitions.

The outlook is stable.

The ratings reflect the company's high debt leverage, modest revenue base, concentration in the animal health and nutrition end markets and aggressive financial policy, Moody's said.

With the incremental debt, the agency said it estimates Phibro's debt leverage to remain above 5x in fiscal 2011, the agency said.

The stable outlook incorporates an expectation for a modest end market growth that translates into slightly improving revenues, Moody's added.

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