Moody's: Electrical Components view to negative

Moody's Investors Service said it revised Electrical Components International, Inc.'s outlook to negative from positive.

Moody's also said it affirmed the company's B2 corporate family rating and B3 probability of default rating, along with the B1 (LGD 2, 26%) rating to its existing $30 million revolving credit facility due 2016 and the B1 (LGD 2, 26%) rating to its existing $160 million senior secured term loan due 2017.

The outlook change reflects a view that ECI's financial flexibility will tighten over the intermediate term due to the contractual quarterly covenant step-downs set to begin in the first quarter of 2012, the agency said.

The company's recent performance has been below expectations, Moody's added.

The ratings benefit from the company's dominant position as a wire harness manufacturer in North America and Europe for the white goods sector, the agency said.

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