Moody's rates Hoffmaster loans B1, Caa1

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to Hoffmaster Group, Inc. The agency also said it assigned a B1 (LGD 3, 33%) rating to its new senior secured credit facilities, including a $30 million revolving credit facility and a $160 million first-lien term loan, as well as a Caa1 rating (LGD 5, 86%) to its $90 million second-lien term loan.

The outlook is stable.

The ratings reflect its modest scale, narrow product focus, strong shareholder orientation offset in part by its strong market presence in the foodservice channel, diversified customer base in consumer retail and modest leverage and improving profitability and cash flow, Moody's said.

While the company's product portfolio consists of low-priced, high frequency, disposable consumer necessities, its sales volume is somewhat dependent on the level of consumer spending on dining and discretionary party supplies, the agency said.

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