S&P: Stanadyne to negative

Standard & Poor's said it revised the long-term outlook to negative from stable on Stanadyne Corp.

The agency also affirmed its CCC+ corporate credit rating.

The outlook revision reflects the risk that Stanadyne may not be able to service debt obligations of its parent, Stanadyne Holdings Inc. as early as August 2012, S&P said.

To make these payments, the company will need a dividend from its operating company, Stanadyne Corp., the agency said.

Stanadyne's ability to upstream dividends to its parent is governed by a restricted payment basket that depends on Stanadyne Corp.'s net income generation, S&P said, and it is uncertain whether the company will generate sufficient profit to service the parent's notes.

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