S&P rates EnPro notes BB-

Standard & Poor’s said it assigned its BB- corporate credit rating to EnPro Industries Inc. The outlook is stable.

At the same time, S&P assigned a BB- issue rating and 4 recovery rating to EnPro’s proposed $300 million senior unsecured notes due 2022. The 4 recovery rating indicates an expectation for average recovery (30%-50%) in a payment default scenario.

S&P said the ratings reflect its assessment of EnPro’s position as a manufacturer of sealing, engineered, and power system products for the processing and general manufacturing industries. Most of its end markets are correlated to general industrial production and are highly cyclical.

EnPro’s good geographic diversity and good proportion of aftermarket revenues somewhat offset these weaknesses and supports S&P’s assessment of EnPro’s business risk profile as “fair,” the agency said.

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