S&P: Mueller Water outlook negative

Standard & Poor's said it affirmed Mueller Water Products Inc.'s ratings, including the B long-term corporate credit rating, and removed them from CreditWatch, where they were placed with negative implications on May 6.

The outlook is negative.

The affirmation follows the company's completion of an amendment to its credit agreement that resets financial covenants. Still, the agency said that if difficult end-market conditions persist, covenant headroom may again become limited.

The ratings on Mueller reflect the company's highly leveraged financial risk profile and weak business risk profile, S&P said.

Positively, the agency said Mueller operates in the moderately cyclical niche markets of the North American water infrastructure market and maintains a good position.

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