Moody's lifts Wyle

Moody's Investors Service said it upgraded the corporate family rating of Wyle Holdings, Inc. to B2 from B3 and assigned the company's senior secured revolver and term loan a rating of Ba2 (LGD2, 19%) and its subordinated note a rating of B3 (LGD5, 77%).

The outlook is stable.

Proceeds will be used to refinance its first-lien, second-lien and seller note debts.

Moody's said the corporate family rating upgrade reflects improved financial flexibility and interest coverage metrics that would follow the planned refinancing.

The B2 rating balances good scale, recent backlog growth and established position in some value-added defense services sub-sectors against moderately high leverage, lack of profitability and a view that future free cash flow generation may be limited, according to the agency.

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