Moody's: Nortek notes Caa2

Moody's Investors Service said it assigned Nortek, Inc. a B3 corporate family rating, a B3 probability of default rating, speculative-grade liquidity rating of SGL-3 and a Caa2 (LGD 5, 87%) rating to the proposed senior notes due 2018.

These are first-time ratings following the company's emergence from Chapter 11 bankruptcy in December 2009.

The outlook is stable.

The ratings consider the company's exposure to cyclical end markets, including new home construction and the repair and remodeling sector, as well as the commercial industry, Moody's said.

Nortek is exposed to volatile raw material costs for commodities such as steel, copper and aluminum, the agency said.

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