Moody's rates Safety-Kleen, loans B1

Moody's Investors Service said it assigned B1 corporate family and probability of ratings to Safety-Kleen Systems, Inc. and B1 (LGD3, 46%) ratings to its $100 million senior secured revolver due August 2012, $230 million senior secured term loan due August 2013 and $48 million synthetic letter of credit due August 2013.

The outlook is stable.

The ratings consider a historically uneven performance record and management retention issues, Moody's said.

The ratings are supported by the good scale of Safety-Kleen's two business segments (collecting/re-refining used oil and specialized industrial cleaning services), moderate leverage, good liquidity and recent purchasing practice improvements that lend confidence of steadier profitability and operating cash flow ahead, the agency said.

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