Moody's rates Atkore notes B3

Moody's Investors Service said it assigned Atkore International, Inc. B2 corporate family and probability of default ratings and assigned its proposed $410 million of senior secured notes due 2017 a B3 (LGD5, 71%) rating.

The outlook is stable.

The ratings reflect Atkore's sensitivity to fluctuating prices of steel and copper, cyclical variations in demand for its electrical and tubular products, a highly competitive market, the company's weakness in the U.S. non-residential construction market and its limited free cash flow, Moody's said.

The rating is supported by the diversity of Atkore's product offering, the market position for many of its products and its operating profit, which should consistently be positive due to its ability to pass through raw material costs over time, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.