S&P rates Continental Group, loan B

Standard & Poor's said it assigned its B corporate credit rating to The Continental Group.

The outlook is stable.

At the same time, the company's proposed $160 million senior secured bank facilities were assigned a B rating and a 3 recovery rating, the agency said.

S&P noted that the ratings reflect Continental's vulnerable business position as a niche supplier of metal products, low barriers to entry, highly cyclical end markets, large working-capital requirements and a highly leveraged financial profile, adding that these weaknesses are only partially offset by the company's recent strong financial performance, long-standing customer relationships and limited capital expenditure requirements.

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