S&P affirms Waupaca with add-on

Standard & Poor's said it affirmed the B+ corporate credit rating on Waupaca Foundry Inc. following news that the company plans to increase its existing term loan by $125 million to $542 million outstanding at close.

The outlook is stable.

The agency also said it affirmed the ratings on Waupaca's term loan at B+ with recovery ratings of 3, indicating 50% to 70% expected default recovery.

The proceeds will be used from the add-on term loan to fund shareholder distributions, S&P said.

The ratings reflect Waupaca's weak business risk profile and aggressive financial risk profile, the agency said.

The ratings consider its exposure to cyclical auto production levels, fragmented nature of the castings industry and Waupaca's reported leading share in its end markets, S&P said.

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