S&P: Sterigenics off watch

Standard & Poor's said it removed its ratings on Sterigenics International Inc. from CreditWatch, where they were placed with negative implications on Aug. 28.

The ratings are affirmed and the outlook is negative, the agency said, noting that although the company's liquidity position has improved since June 30, its somewhat constrained liquidity position is evidenced by a minimal cash balance, a slim cushion on the bank facility's debt leverage covenant test, which steps down again at year end, and the use of cash by operations.

The agency said that the B+ rating reflects Sterigenics' single business focus in a competitive industry, high debt levels and capital expenditures that are large relative to its cash flow from operations.

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