Moody's may cut General Cable

Moody's Investors Service said it placed the ratings of General Cable Corp. under review for downgrade following the company's bid to acquire Phelps Dodge International Corp. for $735 million.

Under review are the company's corporate family and probability-of-default ratings at Ba3 and its $125 million senior unsecured floating-rate notes due 2015, $200 million senior unsecured notes due 2017 and $355 million senior unsecured convertible notes due 2013 rated B1 (LGD4, 63%).

Moody's said it expects General Cable to re-leverage its balance sheet, although leverage on a pro forma basis is estimated at 2.7 times.

The review will focus on the company's financial flexibility following the acquisition, according to the agency.

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