S&P rates Amsted Industries notes BB-

Standard & Poor's said it assigned a BB- issue-level rating to Amsted Industries Inc.'s proposed new $500 million senior unsecured notes and assigned a recovery rating of 4, indicating an expectation of 30% to 50% recovery in a default. The senior secured revolving credit facility issue rating was placed on CreditWatch with positive implications.

The outlook is stable.

The ratings reflect the company's fair business risk profile, although the company's aggressive financial risk profile more than offsets this, S&P said.

The cyclical nature of its markets, as well as its obligations related to employee stock ownership plan redemptions, somewhat constrain credit quality, the agency said.

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