S&P: Thermadyne outlook positive

Standard & Poor's said it revised the outlook on Thermadyne Holdings Corp. to positive from stable and affirmed its corporate credit rating at B-.

The agency said it raised the senior subordinated notes to CCC+ from CCC and revised the recovery rating to 5 from 6 as a result of the full repayment and retirement of the company's second-lien debt.

"Better business conditions have contributed to more rapid improvement in operations than we previously forecast," S&P analyst John Sico said in a statement.

With sales and EBITDA rebounding, operations have improved, and trailing-12-month leverage has improved as well, with lease-adjusted total debt-to-EBITDA ratio at 5.4x as of June 30.

Ratings reflect the company's weak but improving cash flow protection, highly leveraged financial profile and limited financial flexibility, the agency said.

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