Moody's gives B2 to Eco Material, notes

Moody's Investors Service said it gave a B2 corporate family rating, a B2-PD probability of default rating to Eco Material Technologies Inc. and a B2 rating to the company's planned $500 million of senior secured notes.

"Eco Material's B2 CFR reflects our expectation that its operating cash flow will cover capital expenditure needed to develop alternative fly ash supply sources and its adjusted debt to EBITDA will remain in the range of 4x to 5x in the next two to three years. The rating is constrained by its small scale and the expected decline in fresh fly ash volumes from coal-fired utilities," said Jiming Zou, Moody's lead analyst on Eco Material, in a press release.

Eco will use the proceeds to fund the acquisition of Boral Ltd.'s North American fly ash business, which will be combined with Green Cement Inc. under Eco Material.

The outlook is stable.

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