S&P affirms General Cable, rates notes B+

Standard & Poor's said it affirmed its ratings on General Cable Corp., including the BB-/stable corporate credit rating.

At the same time, the agency said it assigned a B+ to the proposed $325 million senior unsecured notes, which are refinancing the existing $285 million senior unsecured notes.

The outlook is stable.

S&P said that the ratings on General Cable reflect moderately high leverage and a cyclical operating profile, driven by fluctuating market demand and volatility in raw material pricing that can affect working capital requirements and cash flow.

These factors are somewhat offset by the company's leading position in a global market for wire and cables, especially in the energy transmission and distribution market, as well as recent increases in profitability, in part because of volume growth and raw material pricing increases passed on to end customers, as well as effective cost cutting and efficiency efforts, the agency noted.

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