Moody's confirms Polypipe

Moody's Investors Service said it confirmed Pipe Holdings 2 Ltd.'s corporate family and probability-of-default ratings at B2 and Pipe Holdings plc's B1 rating on €122 million senior secured notes and the Caa1 rating on €66 million senior unsecured notes.

Pipe Holdings 2 Ltd. is a holding company of Polypipe Building Products Ltd.

The outlook is negative.

Moody's said the confirmation reflects the unchanged capital structure of the restricted group following the end of the change-of-control period.

Polypipe's B2 corporate rating reflects its strong brand, good market share and reduced vulnerability to the cyclicality of the industry, the agency said.

Ratings also reflect the company's limited absolute scale, volatile raw material prices, the competitive and concentrated mature markets and high financial leverage, with a total debt-to-EBITDA ratio of more than 5.3 times for 2006, according to the agency.

The action concludes the review for downgrade that began on Aug. 21.

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