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Moody’s affirms Select’s rating, upgrades outlook after $410 million EmployBridge deal

January 22, 2015

Moody’s affirmed the bank debt rating of Kooshrem LLC, which does business as Select Staffing, and revised the ratings outlook to positive. The decisions came after Select’s $410 million acquisition of EmployBridge Holding Company, according to the ratings company.

Select announced the acquisition of EmployBridge earlier this month. EmployBridge CEO Tom Bickes would become CEO of the combined company. The combined firms could become the largest US industrial staffing provider.

Select’s corporate family rating was affirmed at B3, its probability of default rating was affirmed at B3-PD and its senior secured term loan due 2020 affirmed at B3. In addition, Moody’s upgraded the ratings outlook to positive from stable.

Moody’s reported it expects 2015 revenue of approximately $3 billion for Select.

“Bigger is better in temporary staffing, but merger integration risks, the lingering effects of the 2014 bankruptcy filing on the business, lack of recent audited financial statements and high leverage for a cyclical industry drive the low B rating,” said Edmond DeForest, Moody's senior credit officer.