S&P rates CST Industries, loan B

Standard & Poor's said it assigned its B corporate credit rating to CST Industries, Inc.

At the same time, S&P said it assigned its B ratings and recovery ratings of 2 to the company's proposed $100 million seven-year senior secured term loan facility and $20 million five-year senior secured revolving credit facility.

S&P added that the ratings reflect CST's vulnerable business profile as a manufacturer and erector of factory-coated metal storage tanks in a fragmented and competitive market, noting that the ratings also reflect the company's highly leveraged financial profile and thin cash flow protection measures.

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