Moody's: Stafford/Custom Ecology loans B3

Moody's Investors Service said it assigned B3 corporate family and Caa1-PD probability of default ratings to Stafford Logistics Holdings, Inc., doing business as Custom Ecology, Inc.

Moody's also assigned B3 ratings to the company's proposed $10 million revolving credit facility and $115 million first-lien term facility.

The outlook is stable.

The first-lien revolver and term loan were rated B3, in line with the corporate family rating, as they comprise nearly all the company's debt.

As this debt is first-lien bank debt, Moody's Loss Given Default methodology assumes a 65% average recovery in a default scenario, or higher than the standard 50% family recovery assumption. The result is a higher expected probability of default, leading to the Caa1-PD probability of default rating, the agency said.

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