S&P affirms Ohmstede

Standard & Poor's said it affirmed the B- corporate credit rating on FR X Ohmstede Acquisitions Co., along with the B- rating on the company's proposed $200 million first-lien bank facilities. The agency revised the recovery rating to 3 from 2 and affirmed its CCC rating and 5 recovery rating on Ohmstede's proposed $70 million second-lien bank facilities.

These actions follow the company plans to increase the add-on portion of its first-lien facilities by $65 million and the add-on portion of its second-lien facilities by $20 million.

The outlook is stable.

The ratings reflect the company's niche market position, aggressive financial leverage, low barriers to entry and unproven ability to operate profitably through the cycle, the agency said.

These weaknesses are partially offset by its recent strong financial performance, strong near-term backlog and low capital requirements, S&P added.

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