Moody's: Hupah B2, loan Ba3

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to Hupah Finance Inc., doing business as Capital Safety Group.

Moody's also said it assigned a Ba3 (LGD 3, 32%) rating to the company's proposed $45 million revolving credit facility and proposed $375 million term loan B.

The outlook is stable.

The ratings reflect the company's small scale, high leverage, revenue cyclicality and lack of product diversity as a fall protection pure play, Moody's said.

The company's leverage will initially be high at about 5.8x, but is anticipated to improve to less than 5.3x by the period ending in March 2013, the agency said.

The ratings benefit from the company's well established market and brand position in fall protection equipment, strong margins and business strategy, Moody's added.

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