Moody's cuts Harlan to D-PD

Moody's Investors Service said it affirmed the Caa2 corporate family rating of Harlan Laboratories, Inc. and lowered the probability of default rating to D-PD from Caa3-PD.

The agency withdrew the Caa2 rating on the senior secured term loan and changed the outlook to stable from negative.

The actions follow the acquisition of Harlan by BPA Holdings, Inc. (d/b/a Huntingdon Life Sciences (not rated)) and the termination of the $280 million senior secured term loan that Moody's had rated.

Concurrently, Harlan's lenders consented to exchange their term loan for debt in the new, combined company. The lowering of the probability of default rating reflects Moody's view that this transaction constitutes a distressed exchange.

Moody's said it will withdraw all ratings on Harlan shortly.

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