S&P assigns B to Waterjet notes

Standard & Poor's said it assigned its B corporate credit rating to Waterjet Holdings Inc.

The outlook is stable.

At the same time, the agency assigned its B issue-level rating to Waterjet's $225 million senior secured notes with a recovery rating of 3, indicating an expectation for meaningful (50%-70%) recovery in the event of a payment default.

S&P said the rating on Waterjet reflects the company's "aggressive" financial risk profile, with pro forma leverage of about 4.5x, and its "vulnerable" business risk profile, which reflects its narrow scope of operations and cyclical end markets.

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