Moody’s ups General Cable to stable

Moody's Investors Service said it affirmed General Cable Corp.’s corporate family rating at B2, probability of default rating at B2-PD, senior unsecured notes at B3 and subordinated convertible notes at Caa1.

The speculative grade liquidity assessment was revised to SGL-3 from SGL-4.

The outlook was revised to stable from negative.

Moody’s said the outlook revision represents the improvement in General Cable's credit metrics over the past year in large part due to benefits realized from its 2014 asset optimization, restructuring and divestiture initiatives. Credit metrics also improved from a decline in adjusted debt due to changes in Moody's approach for capitalizing operating leases.

For the trailing 12 months ending July 3, adjusted debt-to-EBITDA declined to 4.2 times from 4.8 times from year-end 2013. Adjusted EBITA margin and adjusted EBITA to interest expense increased to 5% and 2.1 times from 3.7% and 1.7 times, respectively, for the same period.

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