Moody's rates Windsor facility B2

Moody's Investors Service said it assigned a B2 rating to the senior secured credit facility of Windsor Quality Food Ltd., including the $75 million senior secured revolver maturing 2009, $45 million senior secured term loan A maturing 2009, and $100 million senior secured term loan B maturing 2010.

Moody's also assigned a B2 senior implied rating and B3 unsecured issuer rating.

The outlook is stable.

Proceeds from the credit facility and a prospective $85 million senior subordinated note issue, not rated by Moody's, will fund the acquisition of Specialty Brands Inc. from Fremont Partners.

Moody's said the ratings reflect high leverage resulting from the acquisition, the significant size of Specialty Brands ($331 million last-12-months sales) relative to Windsor ($259 million last-12-months sales), and Specialty Brands' low margins and variable performance over the past few years. The ratings, however, also recognize the consistent performance of Windsor and the prospective strategic benefits of the acquisition to Windsor.

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