S&P affirms General Cable

Standard & Poor's said it affirmed its BB- corporate credit rating on General Cable Corp.

The outlook is stable.

This follows the company's announced acquisition of the global wire and cable business of Freeport-McMoRan Copper & Gold Inc. (BB+/positive), which operates as Phelps Dodge International Corp., for $735 million, subject to certain adjustments, the agency said.

S&P said it also affirmed its B+ senior unsecured rating, one notch below the corporate credit rating on General Cable and its BB+ senior secured rating.

The agency added that the ratings on General Cable reflect a cyclical operating profile, driven by fluctuating market demand and volatility in raw material pricing that can affect working capital requirements and cash flow while these factors are offset somewhat by the company's leading position in a global market for wire and cables, especially in the energy transmission and distribution market and leverage that is moderate for the rating.

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