S&P lowers Rexnord

Standard & Poor's said it lowered its corporate credit rating on Rexnord Corp. to B from B+ and removed it from CreditWatch with negative implications.

The ratings were placed on CreditWatch on May 25, when equity sponsor Apollo Management LP announced the acquisition of the Rexnord for $1.8 billion in a leveraged transaction, the agency said.

In addition, the B+ rating and 1 recovery rating on Rexnord's senior secured credit facility were affirmed, the agency said, adding that it also affirmed its CCC+ ratings on Rexnord's $485 million of senior unsecured notes due 2014 and $300 million senior subordinated notes due 2016, both of which were also revised.

The outlook is stable.

S&P said that the lower corporate credit rating and resolution of the CreditWatch are based on the consummation of refinancing transactions Rexnord undertook to support Apollo Management's acquisition of the company.

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