Moody's rates Enterprise Networks B3

Moody's Investors Service said it assigned B3 corporate family and probability-of-default ratings to Enterprise Networks Holdings BV, the 2008 carve-out from Siemens AG's (A1/stable) enterprise networks business.

The proposed €200 million bonds to be issued by EN Germany Holdings BV will be guaranteed on a senior secured basis by ENH as well as key intermediate holding companies and operating subsidiaries of the group.

Moody's assigned a B3 rating (LGD3, 46%) to these proposed bonds.

The outlook is negative.

"The B3 [corporate family rating] for ENH is based on Moody's expectation that the recent uptick in order inflow will lead over the next few quarters to a stabilization in revenues allowing the company to harvest the benefits of its restructuring and cost saving actions in order to stop within the next 2 months the cash consumption from operations and stay within the scope of its liquidity arrangements," Wolfgang Draack, a senior vice president for Moody's, said in a statement.

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