Moody's rates Alcatel-Lucent notes B3; stable

Moody's Investors Service said it changed the outlook on Alcatel-Lucent's B3 corporate family rating and B3-PD probability of default rating to stable from negative.

Concurrently, Moody's affirmed Alcatel-Lucent's corporate family rating, probability of default rating as well as the group's existing instrument ratings, and assigned a provisional B3 rating to the $750 million senior unsecured notes to be issued by Alcatel-Lucent USA Inc.

"We have changed the outlook on Alcatel-Lucent's B3 rating to stable from negative due to the company further improving its liquidity and debt maturity profile as a result of three refinancing transactions since the beginning of 2013," Moody's lead analyst on Alcatel-Lucent Roberto Pozzi said in a news release.

"We also expect the company's announced underwritten capital raising to increase its flexibility to carry out ongoing restructuring plans."

Moody's said the provisional B3 rating on the notes reflects their unsecured nature and hence their junior position in Alcatel-Lucent's capital structure behind the senior secured debt raised by the same entity; and the senior unsecured guarantees from Alcatel-Lucent and certain subsidiaries, which rank pari passu with the other senior debt of the guarantors.

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