S&P rates Mueller loan BB

Standard & Poor’s said it affirmed the BB- corporate credit rating on Mueller Water Products Inc.

The agency also said it assigned a BB rating and 2 recovery rating to the company’s proposed $500 million senior secured term loan. The 2 recovery rating indicates 70% to 90% expected default recovery.

The outlook remains stable.

The ratings reflect an expectation that Mueller will maintain good credit measures, including leverage of less than 3x in the next 12 months, which provides some capacity for a cyclical decline or sizable acquisition, S&P said.

Mueller maintains good market positions in the cyclical North American water infrastructure and nonresidential pipe-related products niche markets, the agency said.

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