Savoy Pictures received a relatively high rating from Moody’s Investors Service Inc. for its $ 75 million debt offering.

The rating agency assigned a Single-B2 rating to the issue of convertible subordinated debentures, due to mature in 2003.

According to Moody’s, the rating reflects this start-up picture distribution company’s strong balance sheet and experienced management, but is moderated by the lack of an operating history, dependence on key personnel and very weak loan covenants.

Still, the independent distributor boasts shareholder equity of $ 914 million. There is also an untouched $ 85 million bank credit facility.

But the agency cautioned noteholders their protection is limited.

“There are virtually no limitations on borrowing capacity and, even though the company is not expected to pay any dividends in the foreseeable future, any such payments are at management’s discretion. Furthermore, there are no restrictions on the company’s ability to enter into other businesses or to make acquisitions,” said the report.