Moody's: WireCo loan Ba2, note cut to B3

Moody's Investors Service said it affirmed WireCo WorldGroup Inc.'s corporate family rating and probability of default rating at B1, but changed the outlook to negative from stable.

Concurrently, Moody's said it assigned a Ba2 rating to the company's proposed $465 million senior secured bank credit facility.

The agency said it also downgraded the rating of the company's $425 million senior unsecured notes due 2017 to B3 from B2. WireCo's speculative grade liquidity assessment remains SGL-2.

Moody's said these rating actions result from WireCo's recent announcement that it is acquiring Koninklijke Lankhorst-Euronete Group BV for approximately $231.2 million. The agency said the debt-financed acquisition of Lankhorst will result in key leverage credit metrics that are weak for the rating category and could cause unexpected integration risk.

Moody's said the negative rating outlook reflects its view that the company's capital structure will remain highly leveraged for the current rating.

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