Moody's rates Armstrong loans Ba1

Moody's Investors Service said it assigned a Ba1 rating to Armstrong World Industries, Inc.'s senior secured bank credit facility and affirmed its Ba2 corporate family rating and Ba3 probability-of-default ratings. Armstrong's speculative grade liquidity rating remains SGL-1.

The outlook is stable.

Proceeds will be used to repay existing term loan debt.

The Ba1 rating assigned to the proposed $700 million senior secured bank credit facility, consisting of a $250 million revolving credit facility and $450 million term loan, reflects its ranking as the preponderance of debt in Armstrong's capital structure, according to the agency.

Armstrong's Ba2 corporate family rating considers the company's strong market position, broad channel diversity and no customer accounts for more than 10% of total net sales, the agency said.

The company's adjusted debt-to-EBITDA ratio was 3.7 times.

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