S&P rates Manitowoc loans BB

Standard & Poor's said it assigned a BB rating and 1 recovery rating to Manitowoc Co. Inc.'s proposed $1.05 billion first-lien credit facilities, which include a $500 million revolver due 2019, a $350 million delayed draw term loan A due 2019 and a $200 million term loan B due 2021.

The 1 recovery rating reflects 90% to 100% expected default recovery.

The proceeds will be used to refinance its existing credit facilities and for general corporate purposes.

The B+ rating and 4 recovery rating on the company's existing $1.3 billion senior unsecured notes remain unchanged. The 4 recovery rating indicates 30% to 50% expected default recovery.

The B+ corporate credit rating and stable rating outlook on Manitowoc remain unchanged.

The company's credit metrics are in line with expectations for the rating, S&P said.

The ratings reflect the company's good customer diversity, product diversity and geographic diversity in the cyclical construction market, the agency said, offset by its more stable food service business.

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