Moody's: Kennametal positive

Moody's Investors Service said it raised the outlook for Kennametal Inc.'s ratings to positive from stable and affirmed its long-term senior unsecured ratings of Ba1. Moody's also assigned a senior implied rating and issuer rating of Ba1 to Kennametal.

Ratings affirmed include Kennametal Inc.'s $300 million senior unsecured notes due 2012 at Ba1.

Moody's positive outlook reflects 1) Kennametal's increasing cash flow generation stemming from higher rates of industrial production and its successful integration of the Widia Group acquisition, 2) Moody's expectations that Kennametal will deploy cash flows for permanent debt reduction thereby further enhancing its debt protection metrics and, 3) Moody's opinion that the company also will execute on its growth strategy through new product introductions and selected acquisition activity in a disciplined manner.

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