Moody's rates Caribe loans B1

Moody's Investors Service said it assigned a B2 corporate family rating to Caribe Information Investment Inc., a B1 rating to its $10 million revolving credit facility due 2012 and a B1 rating to its $155 million term loan facility due 2013. The outlook is stable.

Proceeds will be used to pay for the acquisition of 60% of Verizon Information Services Puerto Rico and 100% of Verizon Servicios de Informacion Dominican Republic. At closing, Welsh, Carson, Anderson and Stowe will acquire 100% of Caribe which, in turn, will be levered up to provide funding for the acquisition of the two Verizon companies.

Moody's said the ratings reflect Caribe's small size, limited growth prospects and a debt to adjusted EBITDA of over 7x after the leveraged buyout transaction.

The ratings are supported, however, by the dominant market share of Caribe's subsidiaries in Puerto Rico and the Dominican Republic, as well an adjusted EBITDA to interest ratio of 1.5x.

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