Moody's rates Exide notes B2

Moody's Investors Service said it assigned a B2 (LGD3 35%) rating to Exide Technologies' proposed $675 million of senior secured notes due 2015 and 2017 and affirmed its corporate family and probability of default ratings at B3, $200 million asset-based revolving credit facility at Ba2 and its $290 million of senior secured junior-lien notes due March 2013 at B3 (LGD3, 47%). Exide Technologies' $130 million senior secured term loan and Exide Global Holdings Netherlands CV's $165 million senior secured term loan were affirmed at Ba3 (LGD2, 17%).

The outlook was changed to positive from stable.

The proceeds from the proposed notes will be used to repay outstandings under Exide's existing senior secured term loans, redeem the outstanding 10½% senior secured junior-lien notes and for general corporate purposes.

The agency said Exide's B3 corporate family rating incorporates the generally stable replacement demand characteristics of the aftermarket transportation markets offset by the cyclicality of the industrial battery markets.

The positive outlook reflects Moody's expectation that generally improving global economic conditions, particularly in the United States, combined with the company's improved operating efficiency will help to offset a recent customer loss and position the company to win new profitable business over the intermediate term.

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