Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

MOODY'S ASSIGNS B1 RATING TO VIASYSTEMS' NEW GTD SENIOR SECURED CREDIT FACILITY AND CONFIRMS B3 RATINGS ON VIASYSTEMS' SENIOR SUBORDINATED NOTES

17 Mar 2000
MOODY'S ASSIGNS B1 RATING TO VIASYSTEMS' NEW GTD SENIOR SECURED CREDIT FACILITY AND CONFIRMS B3 RATINGS ON VIASYSTEMS' SENIOR SUBORDINATED NOTES Moody's Investors Service assigned a B1 rating to Viasystems' new $628 million guaranteed senior secured credit facility, consisting of a $150 million term loan B, due 2007, a $303.1 million Chips term loan, due 2005, comprised of $285.3 million loan principal and a $17.8 million interest reserve, and a $175 million 5-1/2 year revolving credit facility, which will remain undrawn at closing. At the same time, Moody's confirmed its B3 rating on Viasystems' outstanding $500 million 9-3/4% senior subordinated notes, due 2007. The B1 ratings on Viasystems' outstanding guaranteed senior secured credit facilities are additionally confirmed, but will be withdrawn upon the placement of Viasystems' planned initial public offering and the closing of the new bank facility. The company's senior implied rating of B1 and senior unsecured issuer rating of B2 are confirmed. The ratings outlook is stable.

The ratings take into account Viasystems' pro forma 4.3 times debt to cash flow leverage, assuming the company is successful in placing at least $850 million of the IPO, and reflecting the divestiture of nine of its existing printed circuit board (PCB) manufacturing facilities and the expected acquisitions of Wirekraft Industries, Inc., International Wire's wire harness subsidiary, and the network components and services business from Marconi Communications, Inc. Additionally, the ratings are based on the risks associated with integrating these acquisitions as well as continuing the migration of the commodity PCB business to China and the redeployment of much of the company's present capacity to the manufacture of more complex, higher layer count boards; the company's historically low 4.6% ROA and 7% ROI, based on EBITA; the highly leveraged pro forma balance sheet, based on book equity; the sizable $468 million asset impairment charge taken in FY1999Q4 related to the transfer of the operations formerly conducted by Interconnection Systems Limited, Forward Group, Zincocelere, and Viasystems Sweden to a new, independent entity formed by the company's existing stockholders; the high 32% of sales derived from the company's largest customer, Lucent Technologies, which contributed to the disappointing FY1999Q3 performance when revenues eased due to Y2K related order deferrals by Lucent's regional bell operating company (RBOC) customers; competition in the company's evolving electronic manufacturing services (EMS) markets from more established and firmly capitalized North American based concerns; and the prospective additional leverage and future integration challenges stemming from anticipated additional acquisitions.

More particularly, Moody's ratings reflect Viasystems' brief and controversial existence, which has featured the aggressive roll-up of both captive and merchant PCB operations; severe pricing pressure in the company's low layer count PCB markets, due to the convergence of significant currency fluctuations and the emergence of significant offshore competition from the Pacific rim which improved the relative cost position of the Asian producers; the absence, prior to FY1999H2, of a PCB fabrication facility in Asia; and the difficulties encountered in integrating and assimilating the nine divested facilities. The company's plants in Tyneside, England failed to meet management's yield and profitability targets due to a fractious labor force that only recently has begun to respond to new work rules and other incentives dedicated to reducing scrap. After having acquired Kalex Printed Circuit Board Ltd. from Termbray Industries International Limited in mid-1999, the company appeared to have resolved key production and pricing issues through the advent of its sourcing of 2-8 layered boards from a well-managed, highly profitable fabricator in the low cost labor markets of Guangzhou and Zhongshan, China, and be on its way to realizing the global business presence it had always sought. However, with the IPO and contemplated transactions, the company has set out to more aggressively develop its vertically integrated value-added assembly services model based on the leverage derived from its production of highly complex multi-layered PCBs and custom-designed backpanel assemblies. While there are indeed competitive advantages to this strategy, internal logistics and the reorientation of the company's marketing, sales and distribution will take on a somewhat different character from the organizational relationships that have previously prevailed.

The ratings are buttressed by Viasystems' reduction of total debt and debt leverage; the company's pro forma cash availability; margin enhancement from a higher proportion of value-added assembly services revenues, which would have accounted, on a pro forma basis, for 42% FY1999 sales; advanced PCB engineering and manufacturing capabilities at the company's Richmond, Virginia facility, acquired from Lucent, and the Echt, The Netherlands facility formerly operating as Mommers Print Service BV, that are being extended to the remaining plant locations; the early access to customers' new product designs that will be facilitated by the front-end design and fabrication of PCBs and backpanels in the enhanced business model; a premiere roster of telecommunications, networking, computer, industrial, automotive and consumer product customers; and the company's worldwide geographic expanse, including assembly and PCB facilities strategically situated in China.

Moody's additionally recognizes the wealth of entrepreneurial and operational talent dedicated to implementing Viasystems' business plan, accompanied by the largesse of the company's sponsors, Hicks, Muse, Tate & Furst, who have invested $507 million cash equity in the company and will not, at this time, be reimbursed from IPO proceeds. The much improved outlook for telecommunications investment worldwide, based on the strengthening Pacific rim economies, the increased demand for wireless communications services, and the rapid growth of the Internet, should augment customer demand in Viasystems' principal end use markets. The company's products include, or provide substantial functional elements of, various telecommunications switching and transmission equipment, including wireless base stations, as well as servers and data networking equipment such as hubs, routers and switches. The Wirekraft and Marconi acquisitions will augment Viasystems' supply chain management capabilities by enabling the company to accelerate its acquisition of wire harnesses and cable assemblies, custom power supplies, enclosures, racks, sub-racks and, through a joint venture, heat management systems. Furthermore, these products, when combined with the highly complex PCBs and customized backpanels, will enable the company to deliver and service fully integrated enclosures, enhancing its relationship with the OEM customer.

Pro forma sales for the LTM ended December 31, 1999 of $1.18 billion would have been about 7% higher than actual FY1999 sales of $1.102 billion and were 3.8% higher than pro forma FY1998 sales. The transferred operations accounted for about one-third of revenues but only about 12% of FY1999 EBITDA. The company will only pick up a net $18.4 million of EBITDA pro forma for the acquisition of the Wirekraft and Marconi operations and the spin off of the nine PCB facilities. Despite the application of IPO proceeds from the sale of 35% of the company, pro forma capitalization would remain highly leveraged with total debt of $946 million (94.6%) and an estimated $54 million equity (5.4%). On a pro forma basis, Viasystems will remain qualitatively highly leveraged with debt equivalent to 4.3 times pro forma FY1999 EBITDA due to the substantial proportion of cash flow derived from depreciation. Pro forma free cash flow, after deducting estimated FY2000 capital expenditures of $120 million, would have been provided 1.3 times pro forma fixed charges. The company estimates that it will have net operating loss carryforwards amounting to approximately $545 million which will not expire until 2018 or 2019.

The B1 rating on the company's new credit facility reflects the inability of the pledged collateral, net of pro forma available cash which could be drawn upon to fund future acquisitions, to adequately cover the amounts outstanding under the term loan B and Chips loan, according to Moody's estimates. Moody's assumes that asset recovery would be limited to a significant proportion of the company's PP&E situated within North America only, a similar proportion of North American based inventory, and the predominant share of the company's receivables based on the company's very strong customer base. Only 41% of long-lived assets identified on the December 31, 1999 balance sheet were located in the United States and Canada. Furthermore, about 60% of long-lived assets were comprised of PP&E, with intangibles and deferred financing fees accounting for most of the difference. The credit facility will be secured by a perfected first priority lien in all of the capital stock of Viasystems and its direct and indirect domestic subsidiaries as well as 65% of the stock of all first tier foreign subsidiaries, and all tangible and intangible assets. The covenants limit the company's leverage to 4.75 times total net debt to consolidated EBITDA and 2.75 times senior debt, net of cash on hand, to consolidated EBITDA. Consolidated EBITDA coverage of interest must be at least 2.25 times for the LTM ending June 30, 2000.

Viasystems Inc., headquartered in St. Louis, Missouri, has evolved from a manufacturer and marketer of printed circuit boards and custom-designed backpanels for telecommunications, computer, automotive, military and other industrial uses to a leading, full-service worldwide provider of electronics manufacturing services.

No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
Moodys.com