Moody's rates AMR/EmCare loans B2, notes Caa1

Moody's Investors Service said it assigned ratings to the proposed debt of AMR HoldCo. Inc. and EmCare HoldCo. Inc. AMR, which is the larger of the two intermediate holding companies, and EmCare are co-borrowers and co-issuers of all outstanding debt.

Moody's assigned a B2 rating to the companies' $100 million senior secured revolving credit facility due 2011 and $350 million senior secured term loan B due 2012, Caa1 to the $250 million senior subordinated notes due 2015, B2 senior implied rating and B3 senior unsecured issuer rating.

The proceeds from the proposed transactions, along with $220 million cash equity from Onex Partners LP, will be used to effect the purchase of the two companies being sold by Laidlaw Inc. (B1 senior implied rating) for about $840 million.

Moody's said the ratings reflect the risks associated with operating as a stand-alone entity pro forma for the separation from Laidlaw Inc.

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