S&P gives MAI Holdings, notes B

S&P said it assigned its B corporate credit rating to MAI Holdings Inc.

The outlook is stable.

At the same time, the agency assigned its B issue-level rating to the company's $135 million senior secured notes due 2023. The 3 recovery rating indicates an expectation for meaningful recovery (50% to 70%; rounded estimate: 50%) in the event of default.

S&P said the ratings on MAI reflect the printing equipment manufacturer's small revenue base, limited scope and slightly below-average profitability relative to more highly-rated capital goods firms.

However, the agency said it expects adjusted debt to EBITDA to be about 4.5x over the next 12 to 24 months, which compares favorably with many similarly rated companies.

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