S&P assigns B+ to DXP loan

S&P said it assigned its B corporate credit rating to DXP Enterprises Inc. The outlook is stable.

At the same time, S&P assigned a B+ issue-level rating to the company's proposed $250 million term loan due 2023. The recovery rating is 2, indicating an expectation of substantial (70%-90%, rounded estimate: 70%) recovery in the event of a payment default.

“Our rating incorporates DXP's volatile profitability and cash flow owing to its exposure to cyclical end markets. The company operates in a fragmented and competitive industry, relying on closely guarded territories and distribution rights,” S&P said in a news release.

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