Moody's rates Agilent notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Agilent Technologies, Inc.'s proposed offering of up to $750 million senior notes due 2013 and 2020.

The outlook is stable.

Proceeds will be used to pre-fund and partially finance Agilent's repayment of the $1.5 billion World Trade Enhanced Note, which matures January 2011.

The agency said the Baa3 rating reflects Agilent's leading market positions within the measurement industry, the good execution of its operating model, solid free cash flow generation and a demonstrated ability to produce strong credit metrics throughout economic downturns.

At the same time, the Baa3 rating considers the inherently volatile and cyclical nature of Agilent's electronic measurement business segment, that segment's historic blended growth rates near or below that of its addressable markets, potentially increasing competitive threats in view of industry consolidation trends as well as the risk of additional acquisition activity and the possible resumption of shareholder-friendly actions as the business environment improves, Moody's said.

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