Fitch rates Emeco notes BB-

Fitch Ratings said it has assigned Emeco Holdings Ltd. a long-term foreign-currency issuer default rating of B+.

The outlook is stable.

Fitch said it has also assigned expected ratings of Emeco Pty Ltd.'s proposed $360 million of senior secured notes due 2019 at BB-(exp) with a recovery rating of RR3.

Emeco's ratings reflect its earnings' high sensitivity to commodity cycles due to its position as a rented equipment supplier to mining companies, the agency said.

The ratings also take into account Emeco's low operating leverage, Fitch's expectation of an improvement in Emeco's financial profile, and its flexibility in managing capex, which allows it to preserve operating cash flows during industry downturns.

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