Moody's rates Goodman Global loan B2

Moody's Investors Service said it assigned a B2 rating to Goodman Global Holdings Inc.'s new senior credit facilities along with a B2 senior implied rating and a SGL-2 rating.

More specifically, Moody's assigned a B2 rating to the company's $150 million senior secured revolving credit facility due 2010 and $350 million senior secured term loan B due 2011, a B3 rating to the company's $200 million senior unsecured floating-rate notes due 2012, a Caa1 rating to the $450 million senior subordinated notes due 2012, and a Caa1 issuer rating.

The outlook is stable.

Moody's said the ratings consider Goodman's high leverage, low interest coverage, seasonality, working capital swings, expected higher raw materials pricing, and the competitive nature of the heating, ventilation, and air conditioning business. The ratings also consider the company's impressive market share, and expectations for improving cash flow generation.

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