S&P rates Houghton loans B+

Standard & Poor's said it assigned its B+ corporate credit rating to Houghton International Inc. The outlook is stable.

S&P also assigned its B+ rating and its recovery rating of 4 to Houghton's proposed $115 million senior secured credit facilities.

The ratings reflect Houghton's limited business diversity, exposure to cyclical end markets and volatile raw-material costs and highly competitive industry dynamics that result in weak profit margins, S&P said.

These weaknesses are only partially offset by the company's good geographic diversity and stable market position within the niche metalworking and chemicals management service markets, 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.