S&P downgrades Stewart & Stevenson

Standard & Poor's said it lowered the corporate credit rating on Stewart & Stevenson LLC to B- from B and its senior unsecured notes to CCC from CCC with 6 recovery rating.

The outlook is negative.

"The downgrade reflects extremely aggressive leverage and very poor financial performance," S&P analyst Kenneth Cox said in a statement.

Ratings reflect the company's reliance on cyclical end markets, its short track record and its highly leveraged financial profile, the agency said.

Ratings also reflect its low annual maintenance capital spending requirements and its long-standing relationship with original equipment manufacturer suppliers, the agency noted.

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