S&P rates Husky loans B, CCC+

Standard & Poor’s said it assigned a B rating and 3 recovery rating to Husky Injection Molding Systems Ltd.’s proposed $1.265 billion senior secured first-lien term loan.

The agency also said it assigned a CCC+ rating with 6 recovery rating to Husky’s proposed $300 million senior secured second-lien term loan.

Husky Injection Molding Systems is a wholly owned subsidiary of Husky International Ltd., the agency said.

The planned financing is considered credit neutral because the proceeds will be used to almost exclusively repay the company’s outstanding debt, S&P said.

The 3 recovery rating reflects 50% to 70% expected default recovery.

The ratings reflect the company’s fair business risk profile stemming from the company’s leading market share in the global plastic injection molding equipment industry, diverse customer and geographic base and relatively stable profitability, the agency said.

The ratings also consider the cyclical volatility of the industry, S&P added.

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