S&P: American Piping recovery rating now 3

Standard & Poor’s said it revised the recovery rating on American Piping Products Inc.’s $100 million 12¾% senior secured notes due 2017 to 3 from 4. The 3 recovery rating indicates an expectation for a meaningful recovery (50% to 70%).

The B- issue-level rating is in line with the corporate credit rating on the company.

S&P revised the recovery rating based on a moderate improvement in S&P’s projected recovery assessment because of lower assumed outstanding borrowings under American Piping’s $28 million asset-based lending revolving credit facility, which is effectively ahead of the senior secured notes under S&P’s analysis, given assumed borrowing constraints in a downside scenario.

The B- corporate credit rating and stable outlook are also unchanged, derived from the company’s “highly leveraged” financial risk and “vulnerable” business risk profile assessments, the agency said.

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