S&P rates Altra notes CCC+

Standard & Poor's said it assigned a CCC+ rating to Altra Industrial Motion Inc.'s proposed $44 million senior unsecured notes due 2013 and affirmed the company's B corporate credit rating and CCC+ $165 million senior secured notes.

The outlook is stable.

Proceeds from the proposed notes will be used to fund the acquisition of Hay Hall Holdings Ltd. With the new debt issue, Altra will have about $220 million of pro forma consolidated total debt at the close of the transaction.

S&P said the speculative-grade ratings on Altra reflect the firm's weak business risk profile and its highly leveraged financial profile. The ratings are constrained by the company's high indebtedness and limited financial flexibility, as well as by the fragmentation, cyclicality and highly competitive nature of the industry and by the company's weak margins.

The ratings also take into account, however, the company's leading positions in niche segments, its good customer, geographic and end-market diversity and its strong brand names, the agency said.

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