Moody's rates Scotsman loans B1

Moody's Investors Service said it assigned B1 corporate family and probability-of-default ratings to Scotsman Industries, Inc. Moody's also said it assigned a B1 to the company's new $30 million senior secured revolving credit facility and a B1 to the company's $115 million senior secured term loan.

The outlook is stable.

The ratings balance Scotsman's low leverage and good coverage metrics against its small size and recent year's business contraction due primarily to the difficult economy, Moody's said.

The ratings benefit from its model as a pure play ice machine maker with an entrenched market position and significant replacement revenues in North America and Western Europe, the agency said.

The ratings consider a slow growth environment in the company's primary markets, which should enable the company to effectively manage its inventory and working capital needs as the economy recovers, Moody's added.

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