Moody's lowers GenTek loans to B1

Moody's Investors Service said it lowered the proposed ratings on GenTek Holdings LLC's $30 million senior secured revolving credit facility and senior secured term loan B due 2014 to B1 (LGD3, 42%) from Ba3 in response to the $25 million increase in the term loan to $325 million and a corresponding reduction in cash equity.

The agency also affirmed the B1 corporate family and probability-of-default ratings of ASP GT Acquisition Corp.

The proposed outlook is stable.

The agency said the lowered B1 rating reflects its decision to override its loss-given-default methodology template due to the extremely high level of secured debt in GenTek's liability structure relative to the very limited levels of unsecured obligations.

The B1 corporate family rating reflects ASP's publicly stated focus on debt reduction. However, Moody's said this focus on delevering is being tested by this increase in proposed debt and reduction in cash equity prior to closing.

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