Fitch to rate SPX notes BB+

Fitch Ratings said it expects to assign a BB+ rating to SPX Corp.'s planned $500 million senior unsecured seven-year private placement notes. SPX's existing ratings include a BB+ issuer default rating, BB+ senior secured bank debt rating and BB+ senior unsecured debt rating.

The outlook is stable.

The notes will be used for general corporate purposes, including financing the previously announced acquisition of APV.

The agency said the ratings incorporate SPX's diverse business portfolio, its ongoing implementation of comprehensive and more effective business practices across the company and solid demand in many of its infrastructure and energy markets. SPX has been focused on developing its key markets, and Fitch feels the APV acquisition is consistent with this strategy.

Rating concerns include integration risk related to acquisitions, competitive end-markets and challenging conditions in the test and measurement segment, which is exposed to weak demand from North American automotive customers, Fitch said.

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