Moody's affirms Service Corp.

Moody's Investors Service said it affirmed Service Corp. International's Ba3 corporate family rating and lowered the speculative-grade liquidity rating to SGL-2 from SGL-1.

Moody's said it concurrently affirmed the Ba3 probability of default rating, the Baa3 rating on the company's guaranteed credit facility and guaranteed senior notes, and the B1 rating on its non-guaranteed senior notes.

The outlook remains stable.

According to the agency, the lowering of the Service Corp. rating anticipates diminished, though adequate, headroom under the net leverage financial covenant in the credit facility over the next four quarters due to contractual step-downs.

Service Corp.'s SGL-2 speculative-grade liquidity rating anticipates a good liquidity profile with strong projected cash flow, ample availability under a $300 million revolving credit facility and adequate expected headroom under financial covenants, the agency added.

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