S&P rates WTG loans B+, CCC+

Standard & Poor's said it assigned its B corporate credit rating to WTG Holdings III Corp., the parent company of Siemens Water Technologies LLC (not rated). The outlook is stable.

At the same time, S&P assigned a B+ issue rating to the company's proposed $550 million senior secured first-lien credit facility. The recovery rating is 2, indicating an expectation of substantial (70%-90%) recovery in a payment default scenario. The facility includes a $75 million revolver, which will be undrawn at closing, and a $475 million term loan.

S&P also assigned a CCC+ issue rating (two notches below the corporate credit rating) to the company's proposed $105 million second-lien term loan. The recovery rating is 6, indicating an expectation of negligible (0%-10%) recovery in a payment default scenario.

"The ratings reflect our assessment of WTG's business risk profile as 'weak,' characterized by modest end-market and geographic diversity, and its financial risk profile as 'highly leveraged,'" said S&P credit analyst Sarah Wyeth in a news release.

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