Moody's: Scotsman loan at B1

Moody's Investors Service said it affirmed the B1 corporate family rating and B1 probability of default rating of Scotsman Industries, Inc. and the B1 (LGD3-48%) ratings on the company's existing $30 million senior secured revolving credit facility and $115 million senior secured term loan.

Moody's assigned a B1 (LGD3-48%) rating to the company's new $60 million incremental term loan.

The outlook is stable.

The ratings balance Scotsman's improving operational performance, good coverage metrics and strong market share against its small size and the increase in leverage following a special dividend to shareholders funded by the incremental term loan, the agency said.

The ratings benefit from the company's position as a pure play ice machine maker with an entrenched market position and significant replacement revenues in North America, Western Europe and Asia, the agency added.

The ratings contemplate a slow growth environment in the company's primary markets, which will support continued free cash flow generation, Moody's said.

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