S&P: Sequa loan B, notes CCC+

Standard & Poor's said it affirmed its B corporate credit rating on Sequa Corp. The outlook is stable.

At the same time, the agency said it assigned a B issue rating and 3 recovery rating to the proposed $1.5 billion senior secured credit facility, which consists of a $200 million revolver and a $1.3 billion term loan. The 3 recovery rating indicates an expectation of substantial recovery in the event of payment default.

The agency said it also assigned a CCC+ issue rating and 6 recovery rating to the proposed $400 million of senior unsecured notes. The 6 recovery rating indicates an expectation of negligible recovery.

"Our ratings on Sequa reflect our expectations that its currently weak credit protection measures will improve gradually over the next year because of increasing earnings and debt reduction," said S&P credit analyst Christopher DeNicolo in a news release.

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