S&P may lift Gundle/SLT

Standard & Poor's said it placed Gundle/SLT Environmental Inc.'s B- corporate rating on CreditWatch with positive implications.

"The proposed debt reduction from the IPO proceeds should benefit the company's credit profile," S&P analyst James Siahaan said in a statement.

GSE stated in its S-1 registration statement that it expects the initial public offering price to be $13 to $15 per share, which implies net proceeds of about $68 million after deducting underwriting fees and other expenses.

"We currently view GSE's business risk as profile as weak," Siahaan added. This assessment primarily reflects the company's limited scope of operations, the commodity nature of its products and its exposure to fluctuating raw material costs.

These weaknesses are partially offset by GSE's good market position as the largest manufacturer of geomembrane liners, its global manufacturing and distribution capabilities, and its relatively stable end markets.

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