S&P rates Generac loans BB+

Standard & Poor's said it assigned its BB- corporate credit rating to Generac Power Systems Inc. The outlook is stable.

At the same time, the agency said it assigned a BB+ issue level rating to Generac's proposed $725 million senior secured facility, including a term loan A due in 2017, a term loan B due in 2019 and a revolving credit facility due in 2017.

The recovery rating of 1 indicates an expectation of very high recovery for lenders in the event of payment default.

"The BB- corporate credit rating on Generac Power Systems Inc., a manufacturer of standby and portable generators, light towers and other engine-powered products, reflects our view of the company's 'significant' financial risk and 'weak' business risk - as our criteria define the terms," said S&P credit analyst Megan Johnston in a news release.

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