Moody's rates Harbinger notes Caa1

Moody's Investors Service said it assigned a B3 corporate family and probability-of-default ratings to Harbinger Group, Inc. and a Caa1 rating (LGD3, 44%) to its $325 million senior secured notes and an SGL 3 speculative grade liquidity rating.

The outlook is stable.

Proceeds will be used for working capital and general corporate purposes, including the financing of acquisitions and investments.

The B3 corporate family rating reflects the effective subordination of HRG to the direct claims on the assets and cash flows of Spectrum Brands, HRG's only current subsidiary, which is rated B2, according to the agency.

Spectrum Brands' B2 corporate family rating reflects its size with revenue around $3 billion and good product diversification with products ranging from personal care items, to pet supplies and small appliances, the agency said.

The highly competitive battery industry constrains Spectrum's rating, the agency noted.

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