Moody's affirms Amphenol at Ba1

Moody's Investors Service said it affirmed the Ba1 corporate family rating on Amphenol Corp. The outlook is stable.

The affirmation follows Amphenol's announcement that it is acquiring the Connection Systems division of Teradyne Inc. for about $390 million, Moody's said.

Amphenol plans to finance the transaction with its existing unsecured revolving credit facility, which may be expanded with consent of the lenders to $1 billion from $750 million, Moody's said.

The rating is supported by Amphenol's well-positioned financial profile, its business position, history of stable cash generation and healthy operating profit margins, Moody's said.

The Teledyne acquisition will add about $380 million in annual revenue and enhance Amphenol's position in communication and information technology markets, Moody's said.

The stable outlook reflects Moody's expectation that Amphenol will adjust its financial policy to place greater emphasis on debt reduction while scaling back share repurchase activity and not undertake another large acquisition in the near term, Moody's said.

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