Moody's upgrades Gundle/SLT Environmental

Moody's Investors Service said it upgraded Gundle/SLT Environmental Inc.'s $40 million guaranteed senior secured revolving credit facility due 2009 and $18 million guaranteed senior secured term loan due 2010 to B1 from B3, $150 million 11% guaranteed senior unsecured notes due 2012 to B3 from Caa1, corporate family rating to B2 from B3 and the speculative grade liquidity rating to SGL-2 from SGL-3. The outlook is stable.

The upgrades acknowledge the company's significant reduction in financial leverage from cash flow generated by operations since Moody's prior rating action in May 2004.

Despite potential business challenges in the near to medium term, the agency predicted that the company's improved financial profile should provide cushion to absorb potential adverse fluctuations in performance.

The upgrade of the speculative grade liquidity rating reflects Moody's expectation of good liquidity throughout the next 12 months as the company's internal sources of cash plus satisfactory availability under the $40 million committed revolver should amply satisfy mandatory cash requirements.

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