Moody's rates Williams Scotsman loan B2

Moody's Investors Service said it assigned a B2 rating to Williams Scotsman's new $650 million senior secured bank facility. Moody's also affirmed the firm's B2 senior implied rating.

The outlook is stable.

This new facility is expected to replace the company's existing credit facility, with additional proceeds being used to pay down senior unsecured debt.

Moody's said the rating considers Williams Scotsman's intrinsic credit strengths which are benefiting from an improving operating environment. The company has gained a leading market share in the modular space industry over the past few years. Additionally, the company has a diverse customer base throughout the United States and Canada, which limits its exposure to a regional economic downturn.

The credit weaknesses include the high leverage multiples, low core utilization rates since 2002, and lack of growth in average rental rates, the agency said.

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