S&P rates Colfax BB, loan BB+

Standard & Poor's said it assigned a BB corporate credit rating to Colfax Corp., along with a BB+ rating to its $2.1 billion five-year senior secured credit facility.

The recovery rating on the loan is 2, indicating 70% to 90% expected recovery in a default.

The outlook is stable.

The ratings reflect the company's satisfactory business risk profile and aggressive financial risk profile, S&P said.

The acquisition of Charter International, which generated $2.7 billion in sales in 2010, will transform Colfax from a niche market player to a multi-platform industrial company, the agency said.

Although credit ratios will initially be somewhat weak for the rating, the agency said it believes the resulting improvement in Colfax's cash flow and operations will enable the company to achieve credit measures consistent with its corporate credit rating within 12 to 18 months.

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