Moody's rates Agilent notes Ba1

Moody's Investors Service said it assigned a Ba1 rating (LGD4, 52%) to Agilent Technologies, Inc.'s proposed offering of $500 million senior notes due 2017.

The agency also affirmed Agilent's corporate family and probability-of-default ratings at Ba1 and its speculative grade liquidity at SGL-1.

The outlook is stable.

Proceeds will be used to fund the remaining purchases under Agilent's accelerated stock buyback program and replenish cash balances.

The ratings reflect the company's change to a business model that can enhance operating margins and positive cash flow, the agency said. The ratings also benefit from a more focused business strategy in less volatile business segments, and recent research and development projects and investments, according to Moody's.

The ratings are constrained by a smaller revenue base, past operating margins and performance, potential for leveraging events and shareholder-friendly financial policies, the agency said.

Pro forma for the transaction, the issuer's debt-to-EBITDA ratio is 1.1 times.

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