S&P rates Hudson loans BB-

Standard & Poor's said it affirmed the B corporate credit rating on Hudson Products Holdings Inc. and assigned a BB- rating and 1 recovery rating to its proposed $30 million revolving credit facility and a $220 million first-lien term loan.

The outlook is stable.

Proceeds will help fund the purchase of the company by Riverstone Holdings LLC.

S&P said the rating reflects high debt leverage, weak interest coverage, exposure to cyclical end markets and limited but improving scale.

The rating also reflects Hudson's leading market share and its ability to generate free cash flow through most points in the business cycle, the agency said.

Pro forma debt-to-EBITDA ratio as of June 30 was 5.4 times.

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