Moody's: Wesco unchanged

Moody's Investors Service said the ratings of Wesco International, Inc. were not affected by the company's announcement that it entered into a definitive purchase agreement to acquire Communications Supply Holdings, Inc. from Harvest Partners LLC for $525 million.

Moody's said that Wesco plans to finance the transaction with its existing credit facilities, securitization program and the issuance of new convertible senior debentures.

Moody's added that the purchase is significant but will not jeopardize Wesco's positive outlook due to several reasons.

First, Moody's said it said it said it still expects adjusted leverage to gravitate toward 3.0x, adjusted interest coverage to increase towards 5.0x and retained cash flow to total adjusted debt to reach 20% in the near term and, second, liquidity weakens but remains adequate.

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