Moody's gives Ozburn-Hessey loan B2

Moody's Investors Service said it assigned a B2 rating to Ozburn-Hessey Holding Co., LLC's proposed $180 million senior secured credit facilities and also assigned a corporate family rating of B2.

The outlook is stable.

The ratings reflect Moody's expectation of high lease-adjusted leverage, the company's acquisitive nature and high debt on a small fixed asset base with modest cash flow, the agency said.

Moody's noted the ratings also take into account that Ozburn-Hessey's growth and financial performance is dependent on demand for warehouse space for finished consumer goods, which is particularly high at the moment, and the company's commitments to pay for leased-in warehouse space compared to the relatively short maturities of its contracts with customers.

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