Moody's: Tech Data view stable

Moody's Investors Service said it affirmed Tech Data Corp.'s Ba1 corporate family and probability-of-default ratings and changed the outlook to stable from negative. Moody's also assigned a speculative grade liquidity rating of SGL-1.

Affirmed at Ba2 are the $350 million convertible senior unsecured notes due 2026 (LGD6, 94%).

The outlook revision reflects Tech Data's more stable European operations following the completion of its restructuring, facility consolidation and cost savings program, improved business execution and refocused marketing strategy, Moody's said.

The Ba1 corporate family rating reflects challenges to Tech Data's high volume, low margin business model, the agency said.

The ratings also consider the company's solid performance in the Americas, growth opportunities in Eastern Europe, minimal exposure to consumer end markets and moderate leverage, Moody's said.

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