Moody’s gives LABL loan B2, notes Caa2

Moody’s Investors Service said it gave LABL Inc.’s new revolving facility a B2 rating and a Caa2 rating to its new senior unsecured debt.

Concurrently, the agency affirmed LABL's B3 corporate family rating, B3-PD probability of default rating, B2 senior secured notes and Caa2 senior unsecured rating. LABL plans to sell debt to finance the planned merger between it and Fort Dearborn Holding Co., Inc. and the announced acquisitions of a part of Skanem Group's operation. The agency also revised the outlook to negative from stable.

"The negative outlook reflects elevated leverage after the planned merger and Moody's view that it will take more than 18 months for the combined companies to realize full synergies, improve their profitability, and reduce the leverage below 7x," said Motoki Yanase, a Moody’s vice president and senior credit officer, in a press release.

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