S&P rates MKS loan BB+

S&P said it affirmed the BB+ issuer credit rating on MKS Instruments Inc.

The agency also said it assigned a BB+ issue-level rating to the company's proposed $650 million term loan and lowered the rating on its existing senior secured term loan to BB+.

The ratings reflect the company's pro forma leverage of less than 1x following the close of the ESIO acquisition and the related $650 million debt issuance, S&P said.

The ratings also are driven by a view that the acquisition will improve MKS Instrument's ability to integrate its laser products into the printed circuit board (PCB) manufacturing and component manufacturing solutions, the agency said.

With its second major acquisition in three years, MKS continues to diversify its portfolio away from wafer fab equipment spending and reduce its reliance on large semi-cap customers, S&P said.

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