Moody's rates LKQ loans Ba2

Moody's Investors Service said it assigned Ba2 (LGD 4, 50%) ratings to LKQ Corp.'s new $750 million senior secured revolver and new $250 million senior secured term loan.

The agency also said it affirmed its corporate family and probability of default ratings at Ba2.

The outlook is stable.

The new loans were used to repay the company's prior $590 million senior secured term loan and replace the previous $100 million revolver, Moody's said. The Ba2 (LGD4, 50%) ratings on those loans were withdrawn.

The ratings reflect the company's demonstrated ability to grow its business organically, Moody's said, as well as its ability to successfully integrate acquisitions.

The ratings also consider the company's dependence on demand driven by the automotive insurance industry's preference for lower cost automotive replacement parts for collisions and repairs, the agency said.

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