Moody's rates American Seafoods loan Ba3

Moody's Investors Service said it assigned a rating of Ba3 (LGD3, 33%) to the $50 million add-on to American Seafoods Group LLC's term loan B. The corporate family and probability-of-default ratings were affirmed at B1.

ASG Consolidated LLC's $251 million 11½% senior discount notes due 2011 are rated B3 (LGD5, 87% from 85%) and American Seafoods Group LLC's $75 million senior secured revolving credit due 2011 and senior secured term loan A and loan B are rated at Ba3 (LGD3, 33% from 32%).

The outlook remains stable.

Proceeds will help fund the acquisition of a factory trawler and fishing vessel from subsidiaries of Yardarm Knot, Inc.

Moody's said the affirmation was based on the issuer's stable operating cash flow, relative to other natural products processors.

The issuer is expected to have a pro forma debt-to-EBITDA ratio of about 5 times in fiscal 2008.

Ratings consider the company's relatively small size, its limited product diversification, the concentration of raw materials from a single country and large periodic distributions to members, the agency said.

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