S&P boosts General Cable

Standard & Poor's said it raised its corporate credit rating on General Cable Corp. to BB- from B+.

At the same time, the agency said it raised the secured bank loan rating to BB+ from BB and the senior unsecured debt rating to B+ from B.

S&P added it assigned a B+ to the proposed $315 million senior convertible note, due 2013, which would be used to pay down the existing balance on the company's secured bank loan, to pay the net cost of a convertible note hedge and a warrant and for general corporate purposes.

The outlook is stable.

The agency added 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.

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