Moody's: RadioShack notes Ba2

Moody's Investors Service said it assigned a Ba2 (LGD 4, 64%) rating to RadioShack Corp.'s proposed $300 million of senior notes due 2019 and affirmed the company's Ba1 corporate family and probability of default ratings and the Ba2 (LGD 4, 64%) rating on its $375 million of 2½% senior convertible notes due 2013.

The outlook is stable.

The Ba2 rating on RadioShack's notes reflects the notes' junior position to the $450 million senior secured ABL revolving credit facility due 2016.

The ratings on RadioShack reflect its moderate leverage, positive free cash flow profile and successful product and strategy, the agency said.

The ratings consider the product volatility and business risk inherent in consumer technology products given that these items may become commoditized and other retailers could choose to increase their own selection to compete with RadioShack, the agency added.

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