S&P rates Neenah loan B

Standard & Poor's said it assigned a preliminary B corporate credit rating to Neenah Enterprises Inc.

The agency also said it assigned preliminary B issue-level and 3 recovery ratings to the company's $150 million term loan B. The 3 recovery rating indicates 50% to 70% expected default recovery.

The outlook is stable.

The ratings reflect a view that Neenah has a vulnerable business risk profile, which incorporates the highly competitive and cyclical industry in which it operates, S&P said.

The ratings also consider its aggressive financial risk profile, which incorporates a material level of leverage, the agency said. Although commercial truck demand has recently softened, S&P said it believes the company will continue to improve its operations and this should support results in the face of slower demand.

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