Moody's lifts HD Supply

Moody's Investors Service said it upgraded HD Supply, Inc.'s corporate family rating to Caa1 from Caa2 and probability of default rating to Caa1 from Caa2.

This action reflects improvement in the company's operations and improved credit metrics.

Also, HD Supply is implementing a refinancing of its existing capital structure, which will extend its maturity profile effectively by one year to 2015.

The speculative grade liquidity assessment remains SGL-3.

The outlook is stable.

The agency also assigned a B2 (LGD 2, 29%) rating to the first-lien term loan B due 2015 and first-lien senior secured notes due 2015.

Moody's also assigned Caa1 (LGD 4, 52%) ratings to its second-lien senior secured notes due 2015, Caa1 (LGD 4, 66%) on its senior unsecured payment-in-kind notes due 2020 and revised the rating on its $1.8 billion senior subordinated notes due 2015 to Caa3 (LGD 5, 87%) from Ca (LGD6, 90%).

Its speculative grade liquidity assessment remains at SGL-3.

The upgrades reflect improvement in its operations and strengthening credit metrics, Moody's said.

The company is reaping the benefits of its cost reduction programs, the agency said.

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