Moody's confirms Mueller

Moody's Investors Service said it confirmed the ratings of Mueller Group Inc., a wholly owned subsidiary of Mueller Water Products Inc.

Ratings confirmed include the second-lien senior secured notes due 2011 at B3, the senior subordinated notes due 2012 at Caa1, the first-lien senior secured term loan and revolving credit facility at B2, the senior implied rating of B2 and the senior unsecured issuer rating of Caa1.

The ratings confirmation was prompted by Mueller's successful filing of its 10-K for the fiscal year ended Sept. 30, 2004 and 10-Q for the quarter ended Jan. 1, 2005. The company's filing of these statements has cured technical violations under Mueller Group's credit facility, senior subordinated and senior secured notes, as well as Mueller Water Products Inc.'s senior discount notes (unrated).

The company received an unqualified opinion from its independent auditors.

When Mueller's ratings were placed under review for downgrade in January, Moody's had expressed concerns over the potential magnitude of any accounting improprieties as well as any potential weaknesses in the company's financial reporting and internal controls. Moody's said it has concluded that the accounting restatements, which primarily applied to inventory valuation, research and development costs, and revenue recognition, were not sufficiently material to warrant any adjustment to the ratings.

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