S&P rates UTEX loans B, CCC+

Standard & Poor's said it assigned a B corporate credit rating to UTEX Industries Inc., along with a B rating with 3 recovery rating on its $350 million first-lien credit facility consisting of a $300 million term loan and $50 million revolver.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The agency also said it assigned a CCC+ rating to UTEX's $140 million second-lien credit facility. The recovery rating on the second-lien credit facility is 6, indicating 0% to 10% expected default recovery.

The outlook is stable.

The ratings reflect the company's small size and scale of operations, limited end-market and product diversity, exposure to the highly volatile oil and gas exploration sector, private equity ownership and very aggressive leverage, S&P said.

These factors are partially offset by the company's more stable maintenance and repair revenue sources and very healthy margins, the agency said.

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