S&P assigns BB to Mueller Water notes

S&P said it assigned its BB issue-level rating and 3 recovery rating to Mueller Water Products Inc.'s proposed $450 million senior notes due 2029. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a default.

The company plans to use the proceeds from this issuance to repay its existing unsecured notes.

The BB issuer credit rating and stable outlook on Mueller are unchanged.

“Our ratings incorporate our view that the company will maintain strong profitability and solid credit metrics because of the favorable secular trends in the municipal utilities market, which is somewhat offset by its smaller scale and high geographic and customer concentrations,” S&P said in a news release.

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