Moody's: Orchard Supply pressured

Moody's Investors Service said that its updated credit opinion for Orchard Supply Hardware Corp. is that ratings are pressured by the refinancing risk represented by the November 2010 maturity of the company's $120 million of CMBS borrowings.

Moody's added that its B2 corporate family rating and stable outlook reflect the expectation that Orchard Supply will be able to refinance the debt well in advance of maturity and under reasonable terms.

The company does not have sufficient internal sources of cash to finance the maturity, however, Moody's said, noting that ratings could be negatively impacted if the company is unable to secure refinancing commitments by April of 2010 as a result of the risk represented by raising financing in markets, which remain unstable.

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