S&P rates H&E add-on B+

Standard & Poor's said it assigned a B+ rating to H&E Equipment Services Inc.'s proposed add-on of $100 million to its senior unsecured notes due 2022.

The recovery rating on the notes is 5, indicating 10% to 30% expected recovery in a default.

The proceeds will be used to reduce drawings under its $403 million asset-based revolving credit facility.

The BB- corporate credit rating and stable outlook on are unaffected.

The ratings reflect the company's weak business risk profile because of its presence in the cyclical, highly competitive and fragmented equipment rental sector, S&P said.

The ratings also consider the company's aggressive financial risk profile, the agency said.

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