Moody’s: Sensata view stable

Moody's Investors Service said it changed Sensata Technologies BV’s outlook to stable from negative and affirmed the company’s corporate family rating at Ba2, probability of default rating at Ba2-PD, senior secured credit facilities at Baa3 (LGD 2) and senior notes at Ba3 (LGD 5).

The speculative-grade liquidity rating was upgraded to SGL-2 from SGL-3, reflecting the expectation for good liquidity.

The agency said the change in outlook reflects the company's strong margins and deleveraging strategy since the acquisition of Custom Sensors & Technologies Ltd. and Moody’s expectations for ongoing deleveraging through a combination of EBITDA growth and cash flow growth.

The Ba2 rating reflects the company’s history of good cash flow generation, strong margins and good customer relationships in the custom sensors market for automotive, aerospace and various other end markets.

These factors are weighed against the anticipated slower organic sales growth, in part due to softness in new car sales, and recent years' history of large debt-financed acquisitions, totaling about $2 billion, Moody’s said.

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