Moody's affirms Fender; outlook up to stable

Moody's Investors Service said it affirmed Fender's ratings while at the same time revising its outlook to stable from negative.

The affirmation of the ratings and stabilization of the outlook reflects the company's improved operating performance following the debt financed acquisition of KMC in December 2007, the agency added.

Affected ratings include the company's corporate family rating at B1, probability of default ratings at B1, $200 million senior secured term loan at B2 (LGD4, 58%) and $100 million senior secured delayed draw term loan at B2 (LGD4, 58%).

Moody's said that the affirmation of the ratings reflects the company's improved credit metrics in the face of continuing weak discretionary consumer spending and higher raw material costs.

"The stable outlook reflects Moody's expectation that the company will be able to materially maintain its operating performance and improved credit metrics despite the expected continuation of weak discretionary consumer spending for the foreseeable future," said Kevin Cassidy, senior credit officer.

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