Moody's lifts Gibson Guitar, rates loan B3

Moody's Investors Service said it assigned a B3 rating to Gibson Guitar Corp.'s $130 million senior secured credit facility.

The agency also said it upgraded its corporate family rating to B3 and probability of default rating to Caa1.

The outlook was revised to stable from developing.

The rating on the existing secured credit facility was withdrawn.

The upgrade reflects the elimination of the looming liquidity concerns, driven by the new credit facility along with increased confidence that Gibson will be able to regularly issue its unaudited quarterly and audited annual financial statements on time, Moody's said.

The ratings consider the revenue volatility exhibited during the recession, its relatively small scale and continuing concern about its corporate governance structure, the agency said.

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