S&P upgrades Orbotech

Standard & Poor’s said it raised the long-term corporate credit rating on Orbotech Ltd. to BB- from B+.

The agency also said it raised the rating on Orbotech’s senior secured debt to BB- from B+. The recovery rating on these facilities is unchanged at 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The upgrade follows the upward revision of Orbotech’s liquidity assessment to strong from adequate, reflecting Orbotech’s proven track record of maintaining solid liquidity reserves, S&P said.

The agency also said it has not seen the company revise its shareholder-distribution policy, which was a previous concern, and distributions will only come as a second priority to debt repayment.

But Orbotech is likely to continue to seek growth through acquisitions, S&P added.

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