Moody's lowers Cable Design

Moody's Investors Service said it concluded its rating review of Cable Design Technologies Corp., started in February 2004, by taking the following rating actions: Moody's confirmed the senior implied rating at Ba2, lowered the $110 million convertible subordinated debentures to B1 from Ba3, and lowered the senior unsecured issuer rating to Ba3 from Ba2.

The outlook is stable.

The confirmation of the company's existing senior implied rating reflects Moody's view that the operating performance, pro forma for the contemplated all-stock merger with Belden Inc., has bottomed with the expectation of moderate improvement during the next 12 months. This rating also assumes that the combined entities will experience a smooth integration process, clean sale of certain assets from Belden's North American communications business and timely near-term repayment of scheduled maturities for existing Belden senior notes.

Further, the rating accounts for the combined company's cyclical business model as well as the associated increased commoditization.

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