TEXT-Moody's places Acument on review for possible downgrade

(The following statement was released by the rating agency)
March 3 - Moody's Investors Service has placed the B2
corporate family and probability of default ratings of Acument
Global Technologies Inc. [KINGHL.UL] (Acument) on review for
possible downgrade. At the same time, the B2 rating on senior
secured term loan was also placed on review for possible
downgrade.
The review reflects Moody's belief that Acument's financial
performance is under substantial stress given its reliance on the
weakened automotive sector (approximately 60% of worldwide
sales). Moody's expects that Acument is experiencing a meaningful
decline in its credit metrics as demand from key auto OEM and
Tier 1 auto suppliers falls in response to declining global
consumer demand for automobiles.
The review will focus on Acument's ability to stabilize its
earnings and cash flows despite challenging end-market conditions
across its businesses over the intermediate term. Specifically,
Moody's will consider whether the expected decline in product
demand and earnings will weaken leverage and interest coverage
metrics to the point where they are no longer consistent with the
B2 rating.
Moody's will continue to evaluate the effectiveness of cost
cutting initiatives implemented by the company to arrest margin
declines and reorganize its manufacturing footprint and
distribution channels. While Moody's believes that Acument's
elevated cash balances and adequate liquidity profile currently
cushion the B2 rating, the review will assess the sustainability
of Acument's liquidity profile while end-markets remain
depressed.
Ratings under review for possible downgrade: B2 corporate
family rating; B2 probability of default rating; and B2 (LGD4
55%) senior secured term loan. The last rating action was on July
23, 2007 when the B2 corporate family rating was assigned.
The principal methodology used in rating Acument was the
Global Manufacturing Industry rating methodology, which can be
found at in the Credit Policy & Methodologies directory, in the
Ratings Methodologies subdirectory. Other methodologies and
factors that may have been considered in the process of rating
this issuer can also be found in the Credit Policy &
Methodologies directory.
Acument Global Technologies, Inc., headquartered in Troy,
Michigan, is a global provider of mechanical fastening systems
and value-based fastening solutions, including engineered
fastening systems, fastening installation technology, and
inventory management and application engineering services.
The Company manufacturers and sells over 270,000 products
globally. Acument's sales were $1.7 billion for the twelve months
ending September 30, 2008.
Keywords: ACUMENT USA/RATINGS

(C) Reuters 2009. All rights reserved. Republication or redistribution of
Reuters content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Reuters. Reuters and the Reuters
sphere logo are registered trademarks and trademarks of the Reuters group of
companies around the world.

nWNA7935