S&P: Heidelberger notes B-

Standard and Poor's said that it assigned a B+ long-term corporate credit rating to Heidelberger Druckmaschinen AG and a B- issue rating with a 6 recovery rating to the company's €300 million of senior notes. The 6 recovery rating indicates the expectation of a negligible recovery (0% to 10%) in a default scenario.

The outlook is stable.

The ratings on Heidelberger Druckmaschinen reflect the company's weak business risk profile and aggressive financial risk profile, S&P said.

The business risk profile is constrained by the marked cyclicality of the company's end-markets, its weak profitability and over-capacity in the industry with intense pricing competition, the agency said.

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