S&P lowers Sensus USA

Standard & Poor's said it lowered Sensus USA Inc.'s corporate credit rating to B- from B+.

The outlook is negative.

"The downgrade reflects the company's weaker-than-expected operating performance, which has resulted in credit measures that are consistent with a 'highly leveraged' financial risk profile," S&P analyst Carol Hom said in a statement.

"The rating action also reflects our expectation that the headroom under the company's financial covenants could become limited in the coming quarters."

Although the potential award of large new contracts could strengthen Sensus' business prospects later this year, continued weak operating trends and tightening financial covenants could pressure liquidity.

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