Moody's lowers Mobile Mini, Mobile Storage

Moody's Investors Service said it downgraded Mobile Mini, Inc.'s corporate family rating to B1 from Ba3 and its senior unsecured rating to B2 from B1. The agency also downgraded the senior unsecured rating of Mobile Services Group, Inc./Mobile Storage Group, Inc. to B2 from B3.

This rating action follows the closing of Mobile Mini's merger with Mobile Storage and concludes the review of both companies. The outlook is stable.

The agency said the downgrade reflects a significant increase in Mobile Mini's leverage that results from the transaction, as well as declining interest coverage and higher goodwill and intangible assets. Moody's estimates the debt-to-EBITDA ratio will increase to 4.9 times from a 2007 year-end measure of 2.9 times. The rating also conveys a degree of earnings uncertainty that will accompany Mobile Mini's efforts to integrate the Mobile Storage operations and realize cost savings amidst weakening macro-economic fundamentals.

The rating also incorporates the benefits of increased scale and expanded locations afforded by Mobile Mini's combination with Mobile Storage, Moody's said.

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