Moody's rates GenCorp convertibles Caa2, loans B1

Moody's Investors Service said it assigned a Caa2 rating to GenCorp Inc.'s proposed $50 million convertible subordinated notes due 2024 and a B1 rating to the company's new $175 million senior secured credit facilities. The outlook is stable.

All other ratings of the company have been affirmed, including its B2 senior implied rating, B3 unsecured issuer rating, Caa1 rated $150 million 9½% senior subordinated notes due 2013 and Caa2 rated $150 million 5.75% convertible subordinated notes due 2007 and $125 million 4% convertible subordinated notes due 2024.

Moody's said the ratings continue to reflect high debt levels that exist on GenCorp's balance sheet, weak recent results in the remaining Aerojet segment and a high level of reliance on real estate sales for cash flow in the near term.

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