S&P affirms McDermott, rates Babcock loan BBB

Standard & Poor's said it affirmed its ratings on McDermott Inc. and the Babcock & Wilcox Power Generation Group Inc., including the BB+ corporate credit ratings.

The agency added that it revised the outlook to stable from positive.

The Babcock & Wilcox Co. will include the company's power generations systems business, as well as the government operations, the agency said.

On a stand-alone basis, the proposed combined businesses will be less diverse once they are separate from J. Ray McDermott SA, S&P added.

At the same time, the agency said it assigned a BBB issue-level rating to Babcock & Wilcox Investment Co.'s proposed new $700 million senior secured revolving credit facility along with a recovery rating of 1.

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