S&P ups Gardner to positive

Standard & Poor's said it affirmed the BB corporate credit rating on Gardner Denver Inc. and revised the recovery rating on the company's $125 million senior subordinated notes due 2013 to 3 from 4, indicating the expectation of meaningful (50%-70%) recovery in a payment default scenario.

S&P revised the outlook to positive from stable.

The outlook revision reflects the potential for a rating upgrade if Gardner continues to perform better than expectations for its BB corporate credit rating, the agency said.

The company has benefitted from recovering end markets and has made progress improving profitability in its industrial products group, the agency added.

The ratings reflect the cyclical and competitive nature of the industrial equipment markets where the company operates as well as Gardner's good market position, its end-market and geographic diversity, its consistent cash flow generation and its track record of deleveraging after completing debt-funded acquisitions, S&P said.

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