S&P assigns Armtec BB-, notes B

Standard & Poor's said it assigned its BB- long-term corporate credit rating to Armtec Holdings Ltd.

The outlook is stable.

At the same time, the agency said it assigned its B issue-level rating, with a six recovery rating, to the company's proposed C$150 million senior unsecured notes.

"The ratings on Armtec reflect what we view as its exposure to the cyclical commercial and residential construction sectors, exposure to volatile raw-material costs, and its distribution/ future dividend policy, which limits discretionary cash flow generation," said S&P credit analyst Jamie Koutsoukis.

"Partially offsetting these risks, in its opinion, are the company's diversity, relatively stable operating margins, strong market share in the products it produces, and good core revenue base servicing infrastructure spending in Canada."

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