S&P downgrades Milacron

Standard & Poor's said it lowered the corporate credit rating on Milacron Holdings Inc. and its issue-level rating on subsidiary Milacron LLC's senior secured notes to B from B+.

The agency also said it revised the recovery rating on this debt to 3 from 4, indicating 50% to 70% expected default recovery.

S&P also said it removed the ratings from CreditWatch, where it was placed with negative implications in February.

The outlook is stable.

S&P also said it affirmed the B rating on Milacron LLC's $245 million senior secured term loan. The recovery rating on this debt is 3, along with the B- rating on its $465 million senior unsecured notes. The recovery rating on this debt is 5, indicating 10% to 30% expected default recovery.

The actions follow the completion of Milacron's acquisition of Mold-Masters Ltd.

The agency said it believes the acquisition enhances Milacron's business position by adding a portfolio of higher margin, technologically engineered products to the company's portfolio and further balancing the company's footprint toward higher growth end markets and regions.

The acquisition will result in increased overall profitability and contribute to improved revenue stability and growth prospects, S&P said.

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