Moody’s ups Ozburn-Hessey to B1

Moody's Investors Service said it upgraded Ozburn-Hessey Holding Co., LLC's corporate family rating to B1 from B2 and probability of default rating to B1-PD from B2-PD and kept them on review for further upgrade.

The B1 ratings on the company's first-lien bank debt remain on review for upgrade.

These actions conclude the review for upgrade initiated on June 16 upon the adoption of Moody's updated approach for standard adjustments for operating leases published on June 15.

Ozburn-Hessey’s ratings remain under review for further upgrade in response to the Aug. 17 announcement that it entered into an agreement to be acquired by Geodis, a French-based logistics and freight-forwarding company. Geodis generated nearly €7 billion in revenue in 2014 and is 100% owned by SNCF Logistics, a subsidiary of SNCF Mobilites (rated Aa2), France's national railway operator. Once the acquisition closes, all existing debt at Ozburn-Hessey will be repaid in full, and its ratings would subsequently be withdrawn.

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