Moody's gives Hasbro notes Baa2

Moody's Investors Service said it assigned Baa2 ratings to Hasbro Inc.'s new seven- and 30-year notes issuance.

Proceeds will be used to repay the $425 million 6.125% due May 2014 upon maturity, and for general corporate purposes.

Moody's said Hasbro's Baa2 rating is based on its solid market position, portfolio of strong brands, broad geographic diversification, conservative capital structure, and strong credit metrics. These positives are offset by the toy industry's seasonality and inherent volatility due to fashion risk that not only reflects the sudden shifts in the popularity of certain toy products but also includes the fluid demographics such as age compression that exist for certain toy categories.

The ratings also reflect Hasbro's limited size and segment diversification relative to much larger and more diversified packaged goods companies, the agency said.

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