S&P cuts Stolle loan

Standard & Poor's said it revised its bank loan ratings on Stolle Machinery Co.'s first-lien term loan and revolving credit facility to BB-, one notch above the corporate credit rating, from BB.

In addition, the agency said that the recovery ratings were revised to 2 from 1.

The agency noted that the ratings changes follow the company's proposed $100 million add-on to its first-lien term loan amid the company's good recent operating performance.

At the same time, S&P said it affirmed its B+ corporate credit rating on the company.

The outlook is stable.

Proceeds from the upsized first-lien term loan and excess cash will be used repay the company's $50 million second-lien term loan and to pay a dividend, the agency said, adding that the ratings on Stolle reflect the company's highly leveraged financial profile and weak business profile given the limited size and scope of its operations which is somewhat offset by the company's strong market position.

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