Moody's rates Oriental Trading, term loan B2

Moody's Investors Service said it assigned a B2 corporate family rating to Oriental Trading Co. and a B2 (LGD 4, 57%) rating to its proposed $200 million senior secured term loan facility.

The proceeds will be used to repay certain debts currently subject to reorganization in the company's Chapter 11 bankruptcy, Moody's said.

The outlook is stable.

The ratings reflect the company's limited scale and its persistently negative trends in revenues and earnings since 2008, Moody's said.

The company has seen its revenues decline by more than 25% over the past few years due to a drop in catalog mailings, rising competition from online sources and the weak consumer environment, the agency said.

The ratings also consider the company's well known brand and the breadth of its product offering relative to competitors, Moody's added.

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