Moody's rates Rexel notes Ba3

Moody's Investors Service said it assigned a provisional Ba3 rating to Rexel SA's proposed €500 million senior notes due 2022. Rexel's Ba2 corporate family rating, its Ba2-PD probability of default rating and the Ba3 ratings on its existing senior notes are unchanged. The outlook remains stable.

Proceeds will be used to redeem Rexel's $500 million 6 1/8% senior notes due 2019, with any remainder being used for general corporate purposes.

The stable outlook reflects Moody's expectation that Rexel will benefit from improved growth in its North American operations, bolstering a slow return to growth in its European operations. At the same time, Moody's expects Rexel's leverage to benefit from a portfolio rationalization that will shift more of its operations into stronger macroeconomic growth such as the United States and Asia. As a result, the stable outlook assumes Rexel's gross leverage will fall below 5 times by the end of 2015.

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