Moody's rates Amphenol notes Baa3

Moody's Investors Service said it rated Amphenol Corp.'s proposed five-year senior unsecured note offering Baa3.

The outlook remains stable.

Proceeds will be used toward dollar-for-dollar reduction in revolver borrowings. Consequently, the transaction is not expected to increase Amphenol's total debt or leverage at closing.

Amphenol's Baa3 issuer rating reflects the company's leading market positions across multiple market segments of the cable and connector industry, the agency said.

The company's strong financial profile, as evidenced by low leverage, solid interest coverage and strong cash flow generating capabilities, helps mitigate volatility in revenues and operating profit that arises from the cyclical nature of connector and cable markets and the company's exposure to unpredictable commodity and energy prices, Moody's noted.

Ratings are constrained by management's acquisition strategy and somewhat limited liquidity, the agency added.

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