S&P assigns SPX notes BB+

Standard & Poor's said it assigned its BB+ issue-level rating to SPX Corp.'s offering of $350 million senior unsecured notes.

At the same time, the agency said it raised the issue-level rating on SPX's existing $500 million of senior unsecured notes to BB+ from BB.

The ratings on both issues are the same as SPX's corporate credit rating.

The agency added that it revised the recovery rating on the existing $500 million of senior unsecured notes to 3 from five and assigned a recovery rating of 3 to the new notes.

"The company intends to use the net proceeds from the $350 million senior unsecured notes offering to redeem part of its unrated senior secured term loan," said S&P credit analyst Sarah Wyeth.

"The ratings revision on the $500 million senior unsecured notes reflects the expected decrease in the outstanding amount of SPX's secured term loan, which improves the recovery prospects on the unsecured debt," she continued.

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