Moody's rates Sedgwick loans B1, Caa1

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Sedgwick, Inc.

The agency also assigned B1 ratings to the company's $125 million first-lien revolving credit facility and $1,085,000,000 first-lien term loan B1 and a Caa1 rating to its $445 million second-lien loan.

These facilities are to be issued in connection with the company's proposed $2.4 billion recapitalization, which is being undertaken by private equity firm KKR along with Sedgwick management and employees. The transaction is expected to close in February, subject to customary closing conditions.

The outlook is stable.

Moody's said Sedgwick's ratings reflect its status as the largest third-party claims service provider in the United States (according to Business Insurance, based on 2012 gross revenue), its diverse customer base, product line and geographic spread in the U.S. and its strong historic organic revenue growth.

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