Moody's rates Kemet notes B2

Moody's Investors Service said it assigned to Kemet Corp. corporate family and probability-of-default ratings of B2 and a B2 rating (LGD3, 44%) to its proposed $275 million senior notes due 2018. Moody's also assigned an SGL-2 speculative grade liquidity rating.

The outlook is stable.

Kemet's B2 corporate family rating reflects its highly volatile business model, which is susceptible to economic cycles, small scale as measured by revenues and lower operating margins, high customer concentration and intense competition, the agency said.

The rating is constrained by relatively high leverage as measured by an adjusted debt-to-EBITDA ratio of 5.4x.

The rating is supported by the company's leading market position, its global reach and geographic revenue diversity, strong customer relationships and broad product portfolio, the agency said.

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