S&P rates KraussMaffei bond B-

Standard & Poor's said it assigned a B long-term corporate credit rating to KraussMaffei GmbH and to Munich Holdings Corporation II Sarl, the indirect parent of KraussMaffei.

The outlook is stable.

S&P also said it assigned a B- rating to KraussMaffei's €325 million proposed eight-year bond. The recovery rating of 5 indicates 10% to 30% expected recovery in a default.

The ratings reflect the company's weak business risk profile and highly leveraged financial risk profile, S&P said.

The business risk profile is restricted by KraussMaffei's operations in the highly competitive and cyclical plastics-processing machinery industry, the agency said, as well as the company's weak and volatile operating profitability.

The business risk assessment also is restricted by KraussMaffei's relatively low share of aftermarket operations compared with industry peers, S&P said.

On the positive side, the company has well-established market positions in Europe and a broad product offering, the agency 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.