S&P rates H&E Equipment Services notes B+

Standard & Poor's said it assigned its B+ unsecured debt rating to H&E Equipment Services Inc.'s proposed issue of $250 million senior unsecured notes due in 2016.

These notes will be used to retire H&E's $250 million in existing debt which has been tendered for cash, the agency said.

S&P added that the corporate credit rating on H&E is BB-/stable and said that the ratings on the company reflect its H&E's business position as a regional provider of construction equipment rental services in the competitive and cyclical sector and an aggressive financial risk profile.

However, H&E has seen an improvement in its operating performance and credit profile in line with the recovery in the equipment rental industry and because of its recent IPO, which helped reduce debt leverage, the agency said.

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