Fitch changes Emeco to negative

Fitch Ratings said it revised the outlook on Emeco Holdings Ltd. to negative from stable.

The agency also affirmed Emeco's B+ long-term issuer default rating and the BB- rating on the $335 million senior secured notes due in 2019 issued by Emeco Pty. Ltd. The notes are secured against the Emeco Group's assets, and guaranteed by Emeco and some of its subsidiaries.

Fitch said the negative outlook reflects challenges faced by Emeco in improving its earnings and leverage (defined as net debt/EBITDA) to below 3 times in the next 18 to 24 months because of the continued weakening in global prices of key commodities over 2014, and the agency’s expectations that prices are likely to remain soft in the next 18 to 24 months.

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