S&P rates Hoover loan B

Standard & Poor’s said it assigned a B corporate credit rating to Hoover Group Inc., which also is known as Hoover Container Solutions.

The outlook is stable.

The agency also said it assigned a B rating and 3 recovery rating to the company’s proposed $195 million senior secured credit facility, which consists of a $30 million revolving credit facility due 2020 and a $165 million term loan due 2022. The 3 recovery rating indicates 50% to 70% expected default recovery.

Hoover operates in the highly fragmented and competitive equipment-rental industry, S&P said.

The business is capital intensive and the company is relatively limited in terms of product and end-market diversity, the agency said.

The company benefits from the relatively stable demand generated from production-related activities in oil and gas markets, S&P said.

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