S&P gives BB- to Rexnord loan

S&P Global Ratings said it assigned its BB- issue-level rating and 3 recovery rating to Rexnord LLC's proposed $1.6 billion first-lien term loan. The 3 recovery rating indicates an expectation for meaningful (upper end of the 50%-70% range) recovery in the event of a payment default.

At the same time, S&P affirmed all of its other ratings on Rexnord, including the BB- corporate credit rating. The outlook remains stable.

S&P said the rating affirmation incorporates the company's expected improvement in credit measures by fiscal-year 2018 following its recent preferred stock issuance and proposed refinancing of its term loan, which includes some debt pay down. It also recognizes that Rexnord's weaker-than-expected operating performance through Sept. 30, 2016, will continue to be constrained by end-market weakness over the next 12 months.

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