S&P lifts Milacron ratings

Standard & Poor's said it raised its corporate credit rating on Milacron Inc. to B- from CCC and assigned a positive outlook.

The $225 million 11.5% senior secured notes due 2011 issued in May, proceeds from which were in escrow pending the shareholder vote, have now been released and the notes are assigned a CCC+ rating as was previously indicated would be the case.

S&P said the upgrade and the resolution of the CreditWatch reflect approval by Milacron's shareholders of various refinancing transactions. These approvals were necessary for the company to implement recent refinancing transactions that repaid various near-term debt maturities and bolstered the company's equity base.

In S&P's view, the ratings on Milacron reflect a still-high but reduced debt burden and weak cash generation because of depressed end-markets in plastic machinery and mold technologies, partly offset by a steady and profitable presence in the machinery aftermarket and industrial metalworking fluids businesses.

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