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.