Moody’s: Zebra CFR Ba3, loans Ba2, notes B2

Moody's Investors Service said it assigned Zebra Technologies Corp. a Ba3 corporate family rating and a Ba3-PD probability of default rating.

The agency also assigned a Ba2 rating to the company’s senior secured credit facilities (revolver and term loan) and a B2 rating to its senior unsecured notes.

The outlook is stable.

The proceeds will be used to fund the acquisition of Motorola Solutions Inc.'s Enterprise Business.

Moody’s said the Ba3 corporate family rating reflects the company's leading market positions in its core segments of rugged handheld computers, barcode scanners and barcode printers. It also reflects the large installed base, long-term customer relationships, and complementary product lines of Zebra and the Enterprise Business, which Zebra will acquire by year-end 2014.

The Ba2 senior secured rating reflects the collateral backing the senior secured credit facilities, the $1.25 billion of senior unsecured notes and the cushion of unsecured liabilities at operating subsidiaries, the agency said. The B2 senior unsecured rating reflects the senior ranking of the senior unsecured notes and the absence of collateral, which results in effective subordination to the senior secured credit facilities.

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