Moody's affirms Brightstar

Moody's Investors Service said it affirmed Brightstar Corp.'s Ba3 corporate family and probability of default ratings and B1 (LGD4, 62%) senior notes rating.

The outlook is stable.

This action follows the company's recent announcement that it plans to issue up to $100 million of add-on notes to the $250 million of 9½% senior notes due 2016 that were privately placed last November.

The proceeds from this offering will be used to repay debt incurred under the ABL revolver, including borrowings used to fund the acquisition of eSecuritel.

The ratings reflect its presence and leadership position as a global services company providing value-added distribution, supply chain, retail and enterprise services to key participants in the wireless telecommunications industry, the agency said.

The ratings consider Brightstar's infrastructure, channel reach and capabilities as a principal supplier of distribution, logistics, inventory management and supply-chain services with high entry/exit barriers in the mobility space, the agency added.

Brightstar's ratings also consider the company's low margin business profile, significant supplier/product-line, customer and regional (Latin America) concentrations and limited pricing power, Moody's said.

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