Moody's raised Lineage Logistics LLC's corporate family and senior secured term loan ratings to B2 from B3, and its probability of default rating to B2-PD from B3-PD, with a stable outlook. The upgrade comes on the back of Lineage's purchase of Preferred Freezer Services LLC, which Moody's believes will result in competitive and operational benefits, including economy of scale advantages owing to Lineage's enlarged size post-merger. Moody's, however, said it is concerned about the warehousing and logistics solutions provider's rapid pace of growth, coupled with integration and execution risks that the rating agency expects to stay elevated over the near term. Additionally, the rating agency anticipates that Lineage will maintain an adequate liquidity profile within the next 12 months. The stable outlook is based on the steady and recurring demand in the cold storage market, as well as potentially muted merger and acquisitions activity within the next 12 to 18 months, according to Moody...
