Moody's gives Springs Window Fashions, loan B1

Moody's Investors Service said it assigned B1 ratings to the proposed senior secured credit facilities of Springs Window Fashions, LLC along with a B1 corporate family rating.

The outlook is stable.

Moody's assigned B1 ratings to the company's $100 million revolver due 2010 and $250 million term B loan due 2012 at B1.

The agency said ratings reflect relatively high leverage as evidenced by an estimated debt to EBITDA of about 4 times at closing coupled with a low single digit adjusted free cash flow to debt ratio on a pro forma basis for 2005.

Moody's added the ratings are supported by solid historical revenue and EBITDA growth, which the agency expects will continue despite the increasing levels of uncertainty regarding housing starts and the fact that the initial low free cash flow to debt metrics mask a certain degree of flexibility with respect to discretionary capital expenditures and growth-related working capital investments.

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