Moody's rates ACCO notes B1, ups facility to Ba1

Moody's Investors Service said it assigned a B1 rating to ACCO Brands Corp.'s $500 million of proposed senior unsecured notes.

Moody's also upgraded the rating on the proposed $1.02 billion senior secured credit facility to Ba1 from Ba2.

ACCO's B2 corporate family rating and probability of default rating remain on review for upgrade.

The speculative grade liquidity rating was affirmed at SGL-2.

Moody's said the B1 rating assigned to the notes reflects the expected post-acquisition Ba3 corporate family rating and probability of default rating.

The credit facility upgrade reflects greater than expected junior ranking obligations in the post-acquisition capital structure, which provides loss absorption to the senior secured creditors in a default scenario, the agency said.

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