Moody's rates Accellent notes Caa2

Moody's Investors Service said it assigned a Caa2 (LGD 5, 82%) rating to Accellent, Inc.'s new senior subordinated notes offering and affirmed the company's existing B3 corporate family and probability of default ratings, $75 million ABL revolver at Ba3 (LGD 1, 2%), $400 million senior secured notes at B1 (LGD 3, 31%) and SGL-2 speculative grade liquidity rating.

The outlook is stable.

The proceeds will be used to refinance the company's existing $295 million senior subordinated notes due 2013.

The rating reflects the company's high leverage, partially offset by stabilizing profitability and cash flow generation, Moody's said.

As a leading outsource manufacturer of medical devices in a highly fragmented field, Accellent is still relatively small in terms of revenues and its dependence on its end-users provides additional risk, the agency said.

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