Moody's: Intcomex outlook stable

Moody's Investors Service said it assigned a B3 rating (LGD3, 48%) to Intcomex Inc.'s proposed $120 million of senior secured notes due 2014.

Moody's also affirmed Intcomex's B3 corporate family rating, upgraded its speculative-grade-liquidity rating to SGL-3 from SGL-4 and revised its ratings outlook to stable from negative.

Proceeds will be used to redeem its 11¾% senior secured notes due January 2011 and repay borrowing under its existing senior secured revolver, which matures in January 2010.

The outlook change to stable reflects expectation that the proposed transaction will improve Intcomex's credit profile as it is expected to eliminate near-term maturities, improve the company's liquidity position and modestly reduce its financial leverage, according to the agency.

The upgrade in the liquidity rating reflects Intcomex's improved liquidity profile, as well as expectation of positive free cash flow generation over the near-term due to improved working capital management, Moody's said.

Intcomex's B3 corporate family rating is constrained by the company's high debt leverage and weak interest coverage, modest scale, exposure to credit risk and high geographic concentration, the agency noted.

The rating also considers Intcomex's good market position and diversified base, its above-average margin profile and moderate barriers to entry in some of its markets, the agency said.

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