Moody's rates Service Corp. notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Service Corp. International, Inc.'s proposed senior unsecured (non-guaranteed) notes due 2029.

The outlook is stable.

The proceeds will be used for general corporate purposes, including the company's 5 3/8% notes due 2022 and repayment of revolving credit facility loans.

The company also announced it is seeking to amend terms and extend maturity of its senior unsecured guaranteed revolving credit facility and term loan due 2022, Moody's said.

The notes will provide Service Corp. with enough cash to extend its debt maturity profile and unlock revolver capacity, the agency said, while only growing financial leverage and interest expense.

Therefore, the agency said it considers the financing a positive credit and liquidity development.

The ratings reflect expectations for modest 1% to 2% revenue growth and debt-to-EBITDA to remain at about 4x, Moody's said.

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