Moody's may cut ARG

Moody's Investors Service said it placed the B2 corporate family ratings of ARG Holdings, Inc. and of its main subsidiary, Alliant Insurance Services, Inc., on review for a possible downgrade following news that the company has agreed to be acquired by The Blackstone Group.

The review will focus on Alliant's financing and strategic plans in connection with the planned acquisition, Moody's said, and the amount of financial leverage that will be used to fund the transaction.

The review also pertains to the B2 rating on ARG's first-lien credit facilities ($265 million term loan and $30 million revolver) and the B3 rating on the second-lien credit facility ($75 million term loan), although Moody's said it expects these facilities to be terminated at the time of the acquisition.

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