S&P gives B to Brundage-Bone notes

Standard & Poor’s said it assigned its B corporate credit rating to Concrete Pumping Intermediate Holdings LLC. The outlook is stable.

At the same time, S&P assigned a B issue rating and 4 recovery rating to the company’s operating subsidiary Brundage-Bone Concrete Pumping Inc.’s proposed $140 million senior secured notes due 2021. The 4 recovery rating indicates an expectation for average recovery (30%-50%) in a payment default scenario.

Brundage-Bone operates in the highly fragmented and competitive equipment rental industry. The business is capital intensive, and the company is relatively limited in terms of product and geographic diversity. The company is also exposed to cyclical end-markets, S&P said in a news release.

However, as the largest provider of concrete pumping, recycling and placement services in the United States, Brundage-Bone has a notable position in its industry niche, the agency added.

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