S&P lowers Ozburn-Hessey

Standard & Poor's said it lowered its corporate credit rating on Ozburn-Hessey Holding Co. LLC to B from B+, following the company's announcement that it plans to make two acquisitions, which will be mainly debt financed.

At the same time, S&P said it lowered its rating on the company's bank loan to B from B+, noting that the bank facility now consists of a $40 million revolving credit facility that matures in 2010 and a $237 million term loan that matures in 2012.

The outlook is now stable.

The agency said that ratings reflect OHL's competitive end markets, high debt leverage and aggressive acquisition strategy, partly offset by favorable near-to-intermediate term industry fundamentals and benefits accruing from the company's nationwide presence and good technological capabilities.

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