Moody's rates Willbros loan Caa1

Moody's Investors Service said it changed Willbros United States Holdings Inc.'s outlook to stable from negative and raised its speculative grade liquidity rating to SGL-3 from SGL-4 to reflect the improved liquidity and debt maturity profile that is expected to result from the company's proposed refinancing of its revolving credit facility and term loan.

At the same time, Moody's assigned a B1 rating to the company's proposed $150 million asset-based revolving credit facility and a Caa1 rating to its proposed $250 million term loan B.

The agency affirmed Willbros B3 corporate family rating and raised the probability of default rating to PD-B3 from PD-Caa1 because the company will no longer have only first-lien debt.

The term loan is rated Caa1 due to its second-lien status on the company's receivables and the low level of net property plant and equipment ($120 million at March 31) that provide the first priority collateral for the term loan.

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