S&P revises capital goods sector

S&P said it reviewed the recovery and issue-level ratings of the U.S. capital goods sector for speculative-grade corporate issuers that were considered under criteria observation (UCO) after the agency published a revised recovery ratings criteria Dec. 7.

With the criteria review complete, the agency said it revised the issue-level and recovery ratings as appropriate.

These actions stem solely from the application of the revised recovery criteria and do not reflect any change in the assessment of the corporate credit ratings for issuers of the affected debt issues, S&P said.

The senior secured rating on Milacron LLC’s $730 million term loan was upgraded to B+ from B with its recovery rating revised to 2L from 3H.

The senior unsecured rating on Park-Ohio Industries Inc.’s $250 million notes was upgraded to B from B- with recovery rating revised to 5L from 6.

The senior secured rating on Wastequip LLC’s $40 mil first-out revolver bank loan due in 2019 was upgraded to BB from BB- with recovery rating revised to 1+ from 1.

The senior secured rating on EnerSys’s $500 million revolver bank loan due in 2018 was downgraded to BBB- from BBB with recovery rating unchanged at 1; the rating on its $150 million bank loan due 2018 was downgraded to BBB- from BBB with recovery rating unchanged at 1. The rating on its $300 million senior unsecured notes due 2023 was affirmed at BB+ and its recovery rating was revised to 3L from 4H.

The senior secured rating on Oshkosh Corp.’s $850 million revolving bank loan due 2019 was downgraded to BBB- from BBB with recovery rating unchanged at 1; the rating on its $400 million term bank loan due 2019 was downgraded to BBB- from BBB with recovery rating unchanged at 1.

The senior secured rating on Ahern Rentals Inc.’s $550 million notes due 2023 was downgraded to B- from B with recovery rating revised to 5L from 4H.

The senior secured rating on Duke Finance LLC’s $125 mil second-lien term loan due in 2022 was downgraded to CCC+ from B- with recovery rating revised to 6 from 5L.

The senior secured rating on HD Supply Inc.’s $850 million term B bank loan due 2021 was downgraded to BB- from BB with recovery rating revised to 3L from 2L; the rating on its $550 million B-2 term bank loan due in 2023 was downgraded to BB- from BB with recovery rating revised to 3L from 2L; $1.25 billion 5¼% first-lien notes due 2021 downgraded to BB- from BB with recovery rating revised to 3L from 2L.

The senior secured ratings on Penn Engineering Fastening Technologies Ltd.’s, Penn Engineering & Manufacturing Corp.’s and PEG GmbH’s $125 mil revolving credit facility bank loan due in 2019 was downgraded to BB- from BB with recovery rating revised to 2L from 1. The rating on Penn Engineering & Manufacturing’s and PEG’s $670 million term bank loan due 2021 was downgraded to BB- from BB with recovery rating revise to 2L from 1.

The senior secured rating on Titan International Inc.’s $400 million notes due 2020 was downgraded to B- from B with recovery rating revised to 3L from 2L.

The senior secured rating on Wastequip LLC’s $210 million term bank loan due in 2019 was downgraded to B from B+ with recovery rating revised to 3L from 2H.

The ratings on Amsted Industries Inc.’s $600 million 5%senior secured notes due 2022 was affirmed at BB and its recovery rating was revised to 3H from 4L and its $250 mil 5 3/8% senior notes due in 2024 was affirmed at BB and its recovery rating was revised to 3H from 4L.

The rating on EnPro Industries Inc.’s $300 million senior unsecured notes due 2022 was affirmed at BB- with recovery rating revised to 4H from 3H.

The rating on J.B. Poindexter & Co. Inc.’s $225 million 9% senior unsecured notes due 2022 was affirmed at B+ with its recovery rating revised to 3H from 4H.

The rating on Shape Technologies Group Inc.’s $225 million 7 5/8% notes due 2020 was affirmed at B with its recovery rating revised to 4L from 3H.

The rating on Xerium Technologies Inc.’s $475 million senior notes due 2021 was affirmed at B with recovery rating revised to 4H from 3L.

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