Moody's: Service Corp loans Baa3, notes B1

Moody's Investors Service said it lowered the debt ratings of Service Corp. International, Inc., including the corporate family rating to Ba3 from Ba2, the probability of default rating to Ba3-PD from Ba2-PD, unsecured to B1 from Ba3, the guaranteed bank debt to Baa3 from Baa2 and the speculative grade liquidity rating to SGL-2 from SGL-1.

At the same time, Moody's assigned a Baa3 to the proposed senior unsecured (guaranteed) delayed draw term loan due 2018 and to the senior unsecured (guaranteed) $500 million revolving credit facility due 2018 and B1 to the proposed senior unsecured notes due 2022.

The ratings on the existing guaranteed bank debt will be withdrawn when the proposed bank debt closes.

The ratings outlook is stable.

The proceeds of the new term loan and notes, along with balance sheet cash and revolver borrowings, will be used to finance the acquisition by SCI of Stewart Enterprises, Inc. and pay related fees and expenses.

"The incremental debt being incurred to finance the acquisition of Stewart even with a reasonable plan to reduce debt, means SCI is likely to have debt to EBITDA above 4 times through 2015," Moody's senior analyst Edmond DeForest said in a news release.

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