S&P rates Edwards UKCo BB-

Standard & Poor's said it assigned a BB- long-term corporate credit rating to Edwards UKCo 1 Ltd.

The outlook is stable.

In addition, the following loans and facility of related entity Edwards (Cayman Islands II) Ltd. have also been assigned ratings: $100 million proposed supersenior revolving credit facility, which has been assigned a recovery rating of 1, indicating a high expectation of full recovery of principal in the event of a payment default and an issue rating of BB+,

$370 million first-lien term loan, which has been assigned a recovery rating of 2, indicating substantial recovery of principal in the event of a payment default and an issue rating of BB- and $245 million second-lien payment-in-kind toggle loan, which has been assigned a recovery rating of 5, indicating negligible recovery of principal and an issue rating of B.

"The ratings on Edwards reflect the company's vulnerability to the cyclicality of the semiconductor industry, high fixed costs, raw materials dependence and technology risks inherent within the high precision manufacturing industry," said S&P credit analyst Louise Newey.

"These weaknesses are partially offset by the company's global market-leading positions within the sectors of semiconductor vacuum subsystem supply, industrial vacuums and R&D. Edwards has significant intellectual property in its core technologies and a broad product portfolio including about 1,600 patented products."

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