Moody's affirms Alliance Laundry

Moody's Investors Service said it affirmed the long term debt ratings of Alliance Laundry Systems LLC, including the a B1 rating on Alliance's $50 million senior secured revolver due 2011, a B1 rating on Alliance's $177 million senior secured term loan due 2012, a B3 on Alliance's $150 million senior subordinated notes due 2013 and a B1 corporate family rating.

The outlook is stable.

Moody's said key factors impacting Alliance's ratings include substantial financial leverage and modest interest coverage, significant customer concentration risks, with its 10 largest customers accounting for over 35% of fiscal 2005 revenues as well as a leading market position in the North American stand-alone commercial laundry equipment market serving laundromats, on-premises laundry and multi-housing sectors.

Alliance's stable outlook reflects Moody's expectation that financial leverage will be under 6.0 times by the end of fiscal 2006, operating margins will remain consistently above 12% and that free cash flow to debt will be at least 5% on a sustainable basis, the agency noted.

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