Moody's assigns Amsted notes B1

Moody's Investors Service said it assigned a B1 senior unsecured rating to Amsted Industries Inc.'s new senior notes due 2018. The agency also said it affirmed its corporate family rating of Ba3.

The outlook is stable.

The proceeds will be used to repay the company's existing term loan and a portion of its account receivables securitization notes, the agency said.

The ratings reflect debt levels that are modest and manageable, which is important considering the cyclical nature of the company's business, Moody's said.

Although demand at the company's rail and trucking product lines has fallen significantly below peak levels, the company is expected to generate robust levels of free cash flow while maintaining a sound liquidity profile, the agency added.

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