Moody's rates Fidji loans B1

Moody's Investors Service said it assigned a (P)B1 corporate family rating to Fidji Luxembourg (BC4) Sarl, a (P)B1 rating to its proposed $300 million term loan due 2020 and a (P)B1 rating to the $30 million revolving credit facility due 2018 to be issued by subsidiary FCI Asia Pte. Ltd. The outlook is stable.

Proceeds from the term loan, plus cash on hand, are expected to be used to fund a $330 million shareholder distribution and shareholder loan repayment.

The agency said the (P)B1 corporate family rating reflects Fidji's small scale relative to competitors in the highly cyclical, global electronic connector industry, moderately high pro forma leverage of around 3.3 times, aggressive financial policies with regards to shareholder returns and an adequate liquidity profile.

The ratings also reflect Moody's view that Fidji's completion of its planned asset sales in 2012, portfolio pruning and organizational restructuring in 2013 will enable it to be a more flexible and focused organization that is better positioned to deal with the ongoing volatility in customer demand inherent in the connector industry.

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