Moody's drops Sensata to Caa2

Moody's Investors Service said it lowered Sensata Technologies BV's corporate family and probability-of-default ratings to Caa2 from B3. The speculative grade liquidity rating was lowered to SGL-3 from SGL-2.

The agency downgraded the senior secured credit facility to B3 (LGD2, 29%) from B1 (LGD2, 28%), $450 million senior unsecured notes due 2014 lowered to Caa3 (LGD5, 75%) from Caa1 (LGD5, 73%), €141 million senior subordinate notes due 2014 lowered to Ca (LGD6, 91%) from Caa2 (LGD6, 90%) and €245 million senior subordinate notes due 2016 lowered to Ca (LGD6, 91%) from Caa2 (LGD6, 90%).

The outlook was changed to negative from stable.

The downgrade reflects the economic downturn and an expectation of further erosion in Sensata's credit metrics due to the deterioration in its sensors and controls businesses, according to Moody's. The company's liquidity profile is also under stress.

Moody's said it also lowered Sensata's speculative grade liquidity rating to SGL-3 from SGL-2 due to the likely erosion of the company's liquidity profile resulting from the business deterioration.

The following ratings/assessments were affected by this action:

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