S&P lowers Manitowoc

S&P said it downgraded Manitowoc Co. Inc. to B from B+.

The agency also said it lowered the rating on the company's senior secured notes to B from B+. The 3 recovery rating is unchanged, indicating 50% to 70% expected default recovery.

The outlook is negative.

The downgrades reflect the extremely soft global demand for cranes, which has weakened the company's operating performance and caused its credit metrics to deteriorate through the third quarter of 2016, S&P said.

The company downwardly revised its guidance for the balance of 2016, the agency said, and its operating environment is expected to remain challenged through 2017 due to excess supply of crane equipment in the industry.

The negative outlook reflects an expectation that continued weak demand in the company's end markets will constrain its operating performance and cause its leverage metrics to become elevated over the next 12- to 18-months, S&P said.

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