Moody's gives Electrical Components loans B1

Moody's Investors Service said it assigned Electrical Components International, Inc. a B2 corporate family rating and B3-PD probability of default rating.

At the same time, the agency assigned a B1 rating to the company's proposed senior secured credit facilities consisting of a $260 million seven-year term loan B and a $50 million five-year revolving credit facility.

The outlook is stable.

Proceeds from the new term loan B will be used to partially finance the purchase of ECI by KPS Capital Partners, LP.

Moody's said the rating benefits from the company's leading market position as a wire harness manufacturer in North America and Europe as well as its low-cost manufacturing capabilities, which it views as a key competitive advantage.

The rating incorporates the agency's expectation that Electrical Components will generate positive free cash flow that will be used for deleveraging during the next few years, Moody's said.

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