S&P puts Brand Energy on negative watch

Standard & Poor's said it placed all of its ratings on Brand Energy & Infrastructure Services, including the B corporate credit rating, on CreditWatch with negative implications.

The CreditWatch listing follows Brand's announcement that it entered into an agreement for purchase by Clayton, Dubilier & Rice LLC from First Reserve and a separate transaction involving its merger with Harsco Corp.'s infrastructure business. The transactions are subject to certain regulatory approvals and are expected to close during the fourth quarter of 2013.

"We believe that the transactions, if completed as planned, could worsen the leverage and free operating cash flow metrics from levels that we previously assumed for Brand for 2014," S&P credit analyst Nishit Madlani said in a news release.

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