Moody’s rates Vishay convertibles B1

Moody's Investors Service said it assigned a B1 rating to Vishay Intertechnology Inc.'s convertible senior debentures due 2042 and affirmed its other ratings including the Ba3 corporate family rating, Ba3-PD probability of default rating and SGL-1 speculative grade liquidity.

The outlook is stable.

Moody’s said the Ba3 corporate family rating reflects Vishay's operating scale and leading market position in the discrete semiconductor and passive electronic components industry.

The rating also reflects the company’s very good liquidity supported by the net cash leverage position, which is prudent given the cyclical demand for electronic components and the competitive intensity and pricing pressure, especially in its semiconductor product lines.

The Ba3 rating incorporates the agency’s expectation that Vishay will follow a conservative financial policy, avoiding large, debt-funded acquisitions or returns to shareholders such that debt to EBITDA (Moody's adjusted) will remain below 3 times over the next few years.

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