Moody's rates Hunter Fan loan B1

Moody's Investors Service said it assigned a first-time rating of B1 to Hunter Fan Co.'s new $50 million revolving credit facility and $150 million tranche B term loan facility.

The outlook is stable.

Moody's said the ratings reflect the company's high customer concentration, its heavy reliance on one product, the increased levels of working capital Hunter Fan is expected to maintain, the risks involved with developing and marketing new products, and its low interest cover and cash flow coverage for the fiscal year ended Oct. 31, 2004.

The ratings are supported, the agency said, by the company's dominant market share and well known brand name, its consistent historical sales growth, its ongoing strategy to diversify its product offerings, the measures it has taken to improve its sourcing in order to control product costs, its experienced management team, and its relatively low level of required capital expenditure.

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