Moody’s ups Global Brass, notes; rates loan B2

Moody's Investors Service said it upgraded Global Brass & Copper, Inc.'s corporate family rating to B1 from B2.

In related actions, the agency upgraded Global Brass’ probability of default rating to B1-PD from B2-PD and 9˝% senior secured notes due 2019 to B2 (LGD4) from B3 (LGD4).

It also assigned a B2 (LGD4) rating to the company's proposed $320 million senior secured term loan.

The outlook remains stable.

Moody’s said the upgrade reflects the improvement in Global Brass’ operating results and credit metrics, as well as the company's enhanced liquidity profile with extended maturities and the expectation that the company will be able to maintain leverage below 3.5 times over the next 12 to 18 months.

Proceeds from the new term loan will be used for redemption of the company's 9˝% senior secured notes due 2019 (rating to be withdrawn upon closing), as well as for fees and related transaction expenses.

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