Moody's affirms H&E

Moody's Investors Service said it affirmed the B1 corporate family and probability of default ratings of H&E Equipment Services, Inc.

In addition, the agency said that the B3 LGD5 rating on H&E's $250 million 8.375% senior unsecured notes due 2016 has been affirmed.

The outlook is stable.

Moody's added that the affirmation and stable outlook acknowledge a recent decline in operating margins and an expectation of flat to slightly negative nonresidential construction growth rates in 2008 with potential for a weak 2009.

The ratings would be subject to downward pressure if operating performance were to materially fall short of expectation, or if the company were to use its strong balance sheet to fund an aggressive acquisition or fleet expansion strategy, the agency noted.

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