Moody's ups Actuant, rates loan Ba2

Moody's Investors Service said it upgraded Actuant Corp.'s ratings, including the senior implied rating to Ba2 from Ba3 and the senior unsecured issuer rating to Ba3 from B1.

At the same time, Moody's assigned a new Ba2 rating to the company's $250 million senior unsecured revolving credit facility due 2009.

The outlook is stable.

Moody's does not rate Actuant's $150 million 2% convertible senior subordinated notes due 2023.

Moody's said the rating upgrade reflects Actuant's improving credit profile and its demonstrated ability to deliver steady performance during the recent economic downturn. The rating action also considers the considerable debt reduction the company has accomplished in recent years, substantially reduced financing costs, good liquidity condition, and a focused management team.

On the other hand, the ratings are constrained by its exposure to cyclical industrial end-markets, integration risks related to its acquisition growth strategy, and its relatively small size.

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