S&P keeps Mark IV on watch

Standard & Poor's said its B corporate credit rating and related issue-level ratings on Mark IV Industries Inc. remain on CreditWatch with negative implications after the company agreed to be acquired by a new equity sponsor and began renegotiating a change-in-control provision and financial covenants with its lenders.

The company was originally placed on CreditWatch on Oct. 19 because of weak financial results that have led to key credit ratios that are below the agency's expectations for the current rating.

Private equity firm Sun Capital Partners has reached a definitive agreement to acquire Mark IV from current equity sponsor BC Partners and other minority equity holders. Terms were not disclosed.

S&P said the focus of its CreditWatch resolution will be Mark IV's prospects for stabilizing or improving credit measures over the near term.

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