Moody's lowers Artesyn Embedded

Moody's Investors Service downgraded the ratings of Artesyn Embedded Technologies, Inc., including its corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD.

The agency also said it downgraded the rating on the company's senior secured notes due 2020 to B3 (LGD 5) from B2 (LGD 5).

The outlook is stable.

The downgrades are due to an expectation that operating performance and leverage metrics will continue to be more in line with the B2 corporate family rating level over the intermediate term, Moody's said.

The company has experienced top-line revenue pressure with revenues declining to $1.1 billion from $1.2 billion over the last two years, the agency said.

The more recent revenue pressure is emanating from lower end-market demand in certain of the company's product segments stemming from softness in its telecom and computing related business, Moody's said.

This decline has more than offset growth in the consumer product-related business during the most recent earnings period, the agency added.

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