Moody's rates Nortek notes B1

Moody's Investors Service said it affirmed NTK Holdings B2 corporate family rating and its Caa2 rating (LGD6, 94%) on its $403 million senior unsecured notes.

The agency assigned Nortek a B1 rating (LGD3, 32%) on its $750 million senior secured notes due 2013 and affirmed the Caa1 rating (LGD5, 78% from LGD4, 68%) on its $625 million senior subordinated notes.

The outlook is negative.

The affirmation considers the company's pro forma liquidity and cost reduction initiatives, the agency said.

Ratings reflect the expectation that 2009 could be a better year for remodeling and home starts than 2008, the agency said.

Ratings also reflect the company's high leverage and generally weak balance sheet, Moody's said.

The B1 rating reflects their priority of claim in the company's capital structure, the agency noted.

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