Moody's may lift Ohmstede

Moody's Investors Service said it placed FR X Ohmstede Acquisitions Co.'s ratings, including the B2 corporate family rating, under review for possible upgrade.

This rating action results from the recent announcement that Ohmstede Ltd. is being acquired by Emcor Group, Inc., a much stronger company with healthier credit metrics, the agency said, adding that Emcor's corporate family rating is Ba1.

The acquisition is valued at $455 million; however, Moody's said it anticipates that change-of-control language within Ohmstede's bank documents will require the repayment of Ohmstede's bank debt.

Affected ratings include Ohmstede's probability of default at B2, $200 million first lien bank credit facilities at B1 (LGD3, 38%) and $70 million, second lien term loan at Caa1 (LGD5, 89%).

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