Moody's rates Belden CDT note Ba2

Moody's Investors Service said it assigned a Ba2 (LGD4, 57%) rating to Belden CDT Inc.'s proposed $350 million senior subordinated notes due 2017 and a Baa3 (LGD2, 13%) rating to its recently upsized $225 million senior secured revolving credit facility due 2011.

The Ba2 corporate family rating and B1 (LGD6, 93%) $110 million subordinated convertible notes due 2023 were affirmed, and the outlook was changed to positive from stable.

The new debt and cash on hand will be used to acquire Hirschmann Automation and Control GmbH and LTK Wiring Co. Ltd.

The agency said the change in outlook to positive reflects the relatively new management team's success in improving operations and the increased geographic, customer and product line diversification the acquisitions will bring.

The Ba2 rating reflects the company's leading market positions in several niches within the electronic cable and connector industries, strong credit metrics and strong cash flow generating capability. The credit metrics, particularly the 2.3x debt-to-EBITDA ratio, are strong for the rating category and suggestive of a higher rating.

The ratings are constrained by the cyclical nature of the cable and connector industries, recent increases in raw materials and inherent risks with the acquisition and integration of two geographically disperse companies, Moody's said.

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