Moody's rates Electrical Components loans Ba2, B2

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to Electrical Components International, Inc. following the successful recapitalization of its balance sheet and emergence from Chapter 11 bankruptcy proceedings.

The agency also assigned Ba2 (LGD1, 9%) ratings to the $12.5 million initial term loan A sub-tranche due 2015 and $20 million additional term loan A sub-tranche due 2012 and a B2 (LGD4, 52%) rating to the $145 million tranche B term loan facilities due 2015.

The outlook is stable.

The agency said the B2 rating reflects Electrical Components' high financial leverage, which was roughly 5 times on an adjusted basis at emergence; an adequate liquidity profile, which benefits from more than $55 million of cash; and high customer concentrations within the North American "white goods" appliance market.

The stable outlook reflects Moody's expectation that the company will restore margins to levels consistent with its historical performance over the intermediate term while reducing leverage to compare favorably with rating peers.

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