S&P rates H&E notes B+

Standard & Poor's said it affirmed its BB- corporate credit rating on H&E Equipment Services Inc.

At the same time, the agency said it assigned its B+ issue-level rating to the proposed new $480 million senior unsecured notes. The recovery rating is 5, indicating an expectation of a modest recovery in a default scenario.

The company is also increasing the size of its unrated asset-backed revolver to $403 million from $320 million.

"The affirmation reflects our expectation that H&E will continue to benefit from positive trends in the equipment rental industry and reduce pro forma leverage to about 3.2x total debt to EBITDA by the end of 2012 from about 3.7x," said S&P credit analyst Sarah Wyeth in a news release.

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