S&P may up National Waterworks

Standard & Poor's said it placed its ratings, including its B+ corporate credit rating, on National Waterworks Inc. on CreditWatch with positive implications.

S&P said the CreditWatch placement follows the S-1 filing with the Securities and Exchange Commission by parent company National Waterworks Holdings Inc. for an initial public offering of up to $400 million, with proceeds to be used in part for the repurchase of all $250 million 12.5% holding company notes, all of National Waterworks Inc.'s $200 million 10.5% subordinated notes, borrowings under its revolving bank credit facility and fees associated with the transaction.

The transaction, if completed as noted in the filing, would be a meaningful shift in the company's financial strategies, which historically have been driven in part by its equity sponsor's very aggressive financial motives, S&P said.

S&P rates the company's senior secured debt B+ and subordinated debt B-.

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