S&P rates Bridon loans B, CCC+

Standard & Poor’s said it assigned a preliminary B long-term corporate credit rating to Bridge Holdco 4 Ltd., the holding company of Bridon.

The outlook is stable.

The agency also said it assigned a preliminary B rating to the proposed first-lien facilities, comprised of a £180 million first-lien facility and $40 million revolving credit facility.

The recovery rating on these facilities is 3, reflecting 50% to 70% expected default recovery.

S&P also said it assigned a preliminary CCC+ rating to the proposed £70 million second-lien facility. The recovery rating on this facility is 6, indicating 0 to 10% expected default recovery.

The ratings reflect the group’s relatively aggressive capital structure following its leveraged buyout by private equity company, Ontario Teachers’ Pension Plan, the agency said.

The ratings also consider Bridon’s weak business risk profile, primarily constrained by the group’s limited business diversification as a pure manufacturer of wire ropes with limited scope of operations and modest sales, S&P said.

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