S&P may up Oglebay Norton

Standard & Poor's said it revised the CreditWatch implications to positive from negative on the B long-term corporate credit rating on Oglebay Norton Co., following the announced acquisition by higher-rated Carmeuse Holding SA (BB+/Watch negative).

The rating on Oglebay had been placed on CreditWatch with negative implications on July 27 following Harbinger Capital Partners' tender offer for the company's shares.

The ratings reflect the company's comparatively small size, its aggressive financial leverage, modest free cash flow, limited liquidity and dependence on cyclical, mature end markets, according to S&P.

The ratings also reflect the company's strong positions in regional markets, diversified customer base and end markets, high barriers to entry and high-quality, long-lived mineral reserves, the agency said.

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