Moody's ups Gundle/SLT, rates loans B3, Caa1

Moody's Investors Service said it upgraded the corporate family and probability of default ratings of Gundle/SLT Environmental, Inc. to B3 from Caa1.

The agency also said it assigned a B3 rating (LGD 3, 45%) on its $45 million first-lien five-year revolver and $125 million first-lien five-year term loan, along with a Caa1 (LGD 5, 71%) on its $40 million second-lien 5.5-year term loan.

The proceeds will be used to refinance the company's existing senior notes and revolver borrowings, which come due in 2012.

The upgrade reflects an improving economic environment, which should help 2011 and 2012 revenues, Moody's said.

The ratings still consider the company's high leverage level and modest interest coverage, the agency said.

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