Moody's downgrades Artesyn

Moody's Investors Service said it downgraded the ratings of Artesyn Embedded Technologies, Inc., including its corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

The agency also downgraded the rating on the company's senior secured notes due 2020 to Caa1 from B3.

The outlook is stable.

The downgrades were driven by an expectation that financial leverage will remain high due to lower margins contributing to lower EBITDA than expected at this time last year and relatively flat revenue growth, Moody's said.

Meaningful debt reduction is not anticipated given the expectation of negative- to breakeven-free cash flow over the next 12 to 18 months.

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