S&P rates ATS Automation notes B+

Standard & Poor’s said it assigned its BB long-term corporate credit rating to ATS Automation Tooling Systems Inc. The outlook is stable.

At the same time, S&P assigned a B+ issue-level rating and 6 recovery rating to ATS’ proposed US$250 million senior unsecured notes due 2023. The 6 recovery rating indicates that lenders can expect negligible (0%-10%) recovery in a default scenario.

“The rating on ATS reflects our view of the company’s fair business risk profile, incorporating its limited product diversity and relatively small scale offset by its sizable installed base and fairly diverse customer base, and intermediate financial risk profile,” said S&P credit analyst Jamie Koutsoukis in a news release.

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