Moody’s rates KWOR loan B3

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to KWOR Acquisition, Inc.

KWOR is a holding company for Worley Claims Services, LLC.

Moody's also said it assigned ratings to the new credit facility that Worley is issuing in connection with a pending buyout of the company sponsored by private equity firm, Kohlberg & Co.

The financing arrangement includes first-lien credit facilities and a second-lien credit facility, the agency said.

The outlook is stable.

The ratings reflect the company’s position as a leading U.S. claims management services company with a national field adjusting platform and good EBITDA margins and cash flows, Moody’s said.

The company has a relatively stable customer base with high switching costs, the agency said.

This strength is offset by the company’s aggressive financial leverage, modest interest coverage, and insurance carrier concentration, Moody’s said.

Following the transaction, the agency said it estimates that Worley's pro forma debt-to-EBITDA ratio will be higher than 7x, the agency said.

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