Moody's rates Grede, loan B1

Moody's Investors Service said it assigned corporate family and probability of default ratings at B1 to Grede Holdings, LLC, along with a B1 (LGD 3, 49%) rating to its new senior secured term loan.

The proceeds from the loan, along with partial funding under a new, unrated $90 million senior secured asset-based revolving credit facility, will be used to finance the strategic acquisition of a Mexican casting business and provide a shareholder distribution.

The outlook is stable.

The ratings incorporate an expectation of Grede's strong interest coverage and modest debt leverage following the financing of a shareholder distribution and the acquisition of the casting business, Moody's said.

The ratings are balanced by the company's exposure to the cyclical automotive and commercial vehicle industries, the agency said, and modest size.

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