S&P rates Goodman Global loans B+

Standard & Poor's said it affirmed the B+ corporate credit rating on Goodman Global Inc. and B+ issue and 3 recovery ratings to its proposed $250 million revolving credit facility due 2015 and $1.4 billion senior secured first-lien term loan due 2016.

The agency assigned B- issue and 6 recovery ratings to Goodman's proposed $375 million senior secured second-lien term loan due in 2017.

The outlook is stable.

"The B+ corporate credit rating reflects what we consider to be Goodman's weak business risk profile, influenced by participation in mature and seasonal markets, exposure to volatile raw material costs, competition from larger and better-capitalized companies, and relatively narrow geographic and product diversity," S&P analyst Thomas Nadramia said in a statement.

The company maintains a good market position and benefits from its relatively low-cost manufacturing base, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.