S&P ups General Cable outlook to positive

Standard & Poor's said it revised its outlook on General Cable Corp. to positive from stable and affirmed the company's B+ corporate credit rating, BB secured bank loan rating and B senior unsecured debt rating.

The revised outlook reflects improved financial leverage metrics stemming from improved profitability and reduced debt, the agency said. As of September (pro forma for the acquisition of Silec and the conversion of preferred stock), General Cable's adjusted total debt to EBITDA ratio fell to 3.5x, compared with 4.9x as of June 2005 and 5.9x in September 2004.

S&P said the ratings on General Cable Corp. 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.

These factors are somewhat offset by the company's leading position in a global market for wire and cables, ongoing reductions in leverage and recent increases in profitability due to product pricing increases and effective cost cutting efforts, the agency said.

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