Moody's rates Cable Design convert Ba3

Moody's assigned a Ba3 rating to Cable Design Technologies Corp.'s proposed $110 convertible subordinated debentures due 2023, and reassigned a senior implied rating of Ba2 and a senior unsecured issuer ratings of Ba2.

The outlook is negative.

Ratings take into account increased leverage which, though moderate at 2.4x pro forma debt to EBITDA, still would be significantly higher than the 1.4x debt to EBITDA leverage in the fiscal year ended July 31, 2001.

Further, profitability, as measured on EBITA return on assets and return on invested capital, as high as 18% and 23%, respectively, in fiscal 2000, and still a commendable 13% and 16%, respectively, in fiscal 2001, declined to 4.3% and 5.4% over the last 12 months ended April 30.

Mitigating factors which support the ratings include solid cash flow from operations, which has enabled it to reduce debt from a recent peak of $161 million. Pro forma free cash flow coverage of fixed charges is expected to be 4.6x.

Ratings also benefit from substantially reduced capital expenditures in fiscal 2003 going forward.

S&P affirms Weatherford ratings

Standard & Poor's affirmed the ratings of Weatherford International Inc., including senior unsecured debt at BBB+ and subordinated debt at BBB.

The outlook is stable.

The affirmation follows Weatherford's overnight issuance of 10 million shares of common shares for about $400 million of proceeds, which will be used to redeem all of its outstanding 5% convertible subordinated preferred equivalent debentures due in 2027.

The debt reduction from the proceeds of the equity issuance will significantly strengthen the balance sheet with pro forma total debt to capital declining to 38% from 48%.

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