S&P: Eco-Bat up to stable

Standard & Poor's said it revised Eco-Bat Technologies Ltd.'s outlook to stable from negative and affirmed its B+ long-term corporate credit rating and B+ issue rating on its $176 million senior bond due 2013 with a 3 recovery rating, indicating the expectation of meaningful (50%-70%) recovery in the event of payment default.

The outlook reflects the opinion that Eco-Bat will be able to preserve its niche market position while benefiting from modest growth, enabling it to generate margins and cash flow in line with historical levels, S&P said.

The revision also considers the view that the company will adopt an approach that balances its liquidity needs with those of its parent company EB Holdings, the agency said.

In the 12 months ended Sept. 30, Eco-Bat's adjusted debt-to-EBITDA ratio was 4.2 times, S&P stated.

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