S&P rates Wire Rope loan B-

Standard & Poor's said it assigned its B corporate credit rating to Wire Rope Corp. of America Inc. and assigned its B- senior secured rating and recovery rating of 3 to the company's proposed $165 million senior secured term loan due 2011.

The outlook is stable.

Proceeds from the proposed note offering, combined with $32.5 million of borrowings from a proposed $45 million revolving credit facility, will be used to acquire Aceros Camesa SA de CV and Camesa Inc., pay a $15 million dividend to equity sponsor KPS Special Situations Fund II LP, refinance existing debt and pay fees, the agency said.

S&P said the ratings reflect highly cyclical, competitive and oversupplied conditions in the industry, vulnerability to imports, susceptibility of earnings and cash flows to rising raw material costs, limited scope of operations, limited liquidity and aggressive debt leverage.

However, the ratings also reflect cost improvements, the benefits associated with the acquisition of Camesa, and currently favorable end-market demand, the agency said.

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