Moody's rates Olympus Water loan B2

Moody's Investors Service said it rated Olympus Water US Holding Corp.'s planned $300 million incremental senior secured term loan B2.

The company's B3 corporate family rating, B3-PD probability of default rating, B2 on the outstanding first-lien term loan and senior secured notes and the Caa2 on the senior unsecured notes remain unchanged, the agency said.

“However, the secured debt risks a rating downgrade, if the company issues any additional first-lien debt or the proportion of first-lien debt increases further relative to the unsecured debt,” Moody’s said in a press release.

The company will use the proceeds to reduce the outstanding amount of the asset-based revolving credit facility and raise its cash balance for business operations.

The outlook is stable.

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