Moody's cuts Leslie's Poolmart, rates notes B2

Moody's Investors Service said it downgraded the senior implied rating of Leslie's Poolmart Inc. to B2 from B1 and assigned a B2 rating to the company's planned $170 million senior unsecured note offering.

Moody's also affirmed Leslie's Poolmart's B2 senior unsecured issuer rating.

Proceeds from the note offering will partially fund a recapitalization of the company. The outlook is stable.

Moody's said the downgrade of the senior implied rating reflects the significantly increased leverage on the company's balance sheet as a result of the company's recapitalization.

The B2 note rating is the result of its majority position in the company's capital structure and its position behind the senior secured credit facility, according to Moody's.

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