Moody's: Safety-Kleen loan B1

Moody's Investors Service said it assigned a B1 rating to the planned $400 million first-lien credit facility of Safety-Kleen Systems, Inc. Concurrently, Moody's affirmed the company's B1 corporate family and probability of default ratings.

The outlook is stable.

Moody's said the ratings acknowledge good credit metrics for the rating level, a favorable outlook for oil spot prices which bodes well for near-term performance prospects, and the company's position as the largest U.S. oil re-refiner with a broad used oil collection network.

The ratings also consider the benefits of ongoing operational changes, and growth plans that could involve significant debt-financed investments and execution risks.

Moody's said it views the scope of restructuring efforts underway, the operational changes to re-align the sales force and boost collection network efficiency, to be achievable and a credit positive.

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