S&P: Actuant outlook negative

Standard & Poor's said it revised the outlook on Actuant Corp. to negative from stable and affirmed its BB corporate credit rating.

"The outlook revision reflects our expectation that, amid lower demand in key markets and deteriorating operating performance, Actuant's credit measures could weaken in the coming quarters, leading to potentially limited headroom over financial covenants in the first half of fiscal 2010," S&P analyst Gregoire Buet said in a statement.

Ratings reflect the company's aggressive financial risk profile, characterized by somewhat high leverage and an acquisitive growth strategy, the agency said.

The company's leading position in niche markets, its diversity and its consistent cash flow support the rating, the agency noted.

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