Moody’s assigns B2 to H&E notes

Moody's Investors Service said it assigned B2 rating to H&E Equipment Services, Inc.'s new $750 million senior unsecured notes due 2025, proceeds of which will be used largely to prepay its $630 million unsecured notes due 2022.

Concurrently, the agency affirmed the B1 corporate family rating and B1-PD probability of default rating upon considering the credit implications of H&E's decision to cancel its planned acquisition of Neff Corp.

H&E's speculative grade liquidity rating was affirmed at SGL-2.

The outlook is stable.

All ratings for Neff Rental LLC, including B2 corporate family rating, B2-PD probability of default rating, B3 senior secured credit facility, SGL-3 and stable outlook, are unaffected at this time. All ratings for Neff Rental will be addressed at a later time.

Moody’s said the affirmation of the corporate family rating reflects credit metrics that are well positioned within the B1 rating category and the company's good liquidity profile. Post the cancellation of its NEFF bid, H&E has decided to focus on tuck in acquisitions and increase the number of stores it opens annually. As a result, the agency said it no longer expects an increase in its leverage metrics over the short-term.

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