Moody's: Sensata PD Caa2/LD

Moody's Investors Service said it changed Sensata's Technologies BV's probability-of-default rating to Caa2/LD from Caa3 reflecting the closing of the Dutch auction tender.

Moody's affirmed the Caa2 corporate family rating, speculative grade liquidity rating at SGL-3, senior secured credit facility affirmed at B3 (LGD3, 31% from LGD2, 29%), $340 million (originally $450 million) senior unsecured notes due 2014 affirmed at Caa3 (LGD5, 77% from 75%), €137 million (originally €141 million) senior subordinate notes due 2014 affirmed at Ca (LGD6, 91%) and €205 million (originally €245 million) senior subordinate notes due 2016 affirmed at Ca (LGD6, 91%).

The outlook is negative.

The change in the company's probability-of-default rating reflects Sensata's recent announcement of the expiration and final results of two separate Dutch auction tender offers.

The Caa2 corporate family rating reflects expectation that Sensata's credit metrics will remain highly speculative in spite of the reduction of $168 million of balance sheet debt, representing about 7% of the company's total rated debt, according to the agency.

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