S&P ups Amsted Industries

Standard & Poor's said it revised its recovery rating on Amsted Industries Inc.'s senior secured revolving credit facility to 1, indicating an expectation of 90% to 100% recovery for lenders in a payment default scenario, from 2. The agency also said it upgraded its revolving facility to BB+ from BB. The agency also said it removed the rating on Amsted's senior secured revolving credit facility from CreditWatch, where we placed it with positive implications in March.

The upgrades reflect the company's amended credit agreement and the completed $500 million senior unsecured notes offering, S&P said. Amsted used the proceeds to repay outstanding term loan borrowings.

The ratings also consider the company's fair business risk profile, although the company's aggressive financial risk profile more than offsets this, the agency said.

The cyclical nature of its markets, as well as its obligations related to its employee stock ownership plan redemptions, somewhat constrain credit quality, S&P added.

© 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.