Moody’s rates On Assignment loan Ba2

Moody's Investors Service said it affirmed On Assignment, Inc.'s corporate family rating at Ba2 and its probability of default rating at Ba3-PD.

Concurrently, the agency affirmed the Ba2 rating of the $578 million first-lien term loan due 2022 and assigned a Ba2 rating to the proposed $822 million incremental first-lien term loan due 2025 and the extended $200 million revolver due 2023.

Moody's also upgraded On Assignment's speculative grade liquidity rating to SGL-1 from SGL-2.

The outlook is stable.

The agency said the SGL-1 liquidity rating reflects On Assignment's very good liquidity supported by strong free cash flow and availability under its $200 million revolving credit facility due 2023.

Moody’s said the affirmation reflects a favorable view of the ECS Federal LLC acquisition, as well as On Assignment's commitment to reducing leverage, its solid free cash flow generation and established record of deleveraging after prior debt-funded acquisitions.

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