Moody's cuts Ray Acquisition view to stable

Moody's Investors Service said it has affirmed the B2 corporate family rating and €600 million 9.375% senior subordinated notes due 2015 rated Caa1 of Ray Acquisition SCA, the holding company for Rexel SA. Also affirmed is Rexel's existing €1.502 billion senior credit facilities rated B2.

The outlook has been revised to stable from positive.

The affirmation follows the company's stated intention to acquire GE Supply, a subsidiary of General Electric Inc., and reflects the fact that the company was already strongly positioned within the B2 rating category.

Moody's said the debt incurred in the current transaction will somewhat weaken the company's credit profile within the rating category and reduce short-term upward pressure on the rating.

The stable outlook recognizes the company's proven ability to deleverage on the back of strong organic growth currently, but also the uncertainty regarding performance improvements within the newly formed U.S. network and the general market trend.

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