Moody's affirms Altra

Moody's Investors Service said it affirmed Altra Holdings, Inc.'s B1 corporate family rating, following the company's plans to issue $75 million of convertible senior notes (unrated) to fund, in part, its acquisition of the assets and liabilities of Danfoss Bauer GmbH).

The outlook remains stable.

The B1 rating reflects Altra's relatively conservative adjusted leverage, at about 3.8x pro forma for the convertible note issuance, consistent free cash flow and good liquidity, the agency said.

Despite the heightened integration risk resulting from the Bauer acquisition, improving demand in both early and late-cycle businesses is expected to support revenue and earnings expansion in 2011, which should allow Altra to restore credit metrics over the near term, the agency said.

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