Moody's gives Sun Products loans B1

Moody's Investors Services said it affirmed the corporate family and probability of default ratings of Sun Products Corp. at B2 and B2-PD, respectively.

Moody's also assigned a B1 rating to the company's $100 million first-lien senior secured revolving credit and a B1 rating to its $1.08 billion term loan B facility.

The outlook was revised to stable from negative.

The bank facilities' rating of B1 is one notch below the company's existing bank facilities ratings due in part to the elimination of the cushion provided by more junior debt, which Moody's expects will be repaid as part of this transaction.

"Sun Product's ability to sustain its much improved profitability, generate free cash flow and reduce its leverage to approximately 6.0 times over the next 6 to 9 months is made more challenging given the sluggish U.S. economic recovery, highly price sensitive U.S. consumer and potential for volatile raw material costs," Moody's senior vice president Janice Hofferber said in a news release.

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