Moody's rates TTM Technologies loans B1

Moody's Investors Service said it assigned a B1 corporate family rating and B2 probability-of-default rating to TTM Technologies, Inc. and B1 ratings with loss-given-default assessments of LGD3 (31%) to the company's $40 million secured revolving credit and $200 million term loan facilities.

The outlook is stable.

Proceeds from the facilities will go toward the purchase price of Tyco's printed circuit board and electronics lines of business.

The agency said TTM's ratings reflect the volatile nature of the printed circuit board industry in North America and the fragmented industry structure with over 400 players, the continued threat of further migration of printed circuit board capacity to lower-cost regions such as Asia and, despite the modest pro forma leverage, the integration challenges TTM faces in acquiring the larger Tyco business lines, whose financial performances have been weaker compared to that of TTM.

The rating also considers TM's leadership position and scale achieved from the acquisition; its focus on technology in the higher layer count, higher end market; its relatively diversified customer base further bolstered by the Tyco printed circuit board business line's stronger presence in the military/aerospace segment; the company's track record of relatively strong financial performance; and its reasonable capital structure with expectation of free cash flow, Moody's said.

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