Moody's affirms Hubbell; outlook negative

Moody's Investors Service said it affirmed Hubbell Inc.'s A3 senior unsecured and Prime-2 short-term ratings and revised the outlook to negative from stable.

The affirmation acknowledges the strong results, excellent liquidity, still conservative capital structure and debt protection measures Hubbell achieved in 2008, the agency said.

According to Moody's, the negative outlook incorporates concerns that prospective performance could significantly ease as activity levels decline in major end-markets in the United States, where the company's revenues continue to be concentrated.

Falling commercial and residential construction volumes along with lower rates of capacity use and capital expenditures across both Hubbell's electrical and power segments are anticipated to pressure Hubbell's future revenues and profitability, the agency added.

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