S&P assigns Dresser-Rand loan BB+

Standard & Poor's said it assigned its bank loan and recovery ratings to the $500 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/stable). The BB+ rating, two notches above the corporate credit rating on the company, and 1 recovery rating, indicate expectation of very high recovery in the event of a payment default.

The corporate credit rating is BB-, reflecting the company's exposure to the highly cyclical oil and gas production and processing industries and its short track record as a stand-alone company, which makes assessing financial performance in a cyclical downturn difficult, the agency said.

S&P noted that partially mitigating these weaknesses are the company's intermediate leverage and strong aftermarket component of revenues.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.