S&P may cut Mobile Mini, up Mobile Storage

Standard & Poor's said it placed Mobile Mini Inc.'s BB long-term corporate credit rating on CreditWatch with negative implications and placed Mobile Storage Group Inc.'s B+ long-term corporate credit rating on CreditWatch with positive implications.

The actions are based on the companies' definitive merger agreement, S&P said. If consummated, the combined entity would be the leading provider of portable storage units in the United States and United Kingdom. The combined companies would yield $25 million of annual cost synergies and a stronger pro forma financial profile than that of Mobile Storage on a standalone basis.

In the deal, expected to close June, Mobile Mini would assume $535 million of Mobile Storage's debt, which could weaken Mobile Mini's already aggressive financial profile, S&P noted.

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