S&P changes Maxim Crane view downward

S&P said it changed the outlook for Maxim Crane Works Holdings Capital LLC to negative from stable and affirmed the company’s B rating.

The negative outlook mirrors Maxim’s increase leverage from the added debt to fund a $50 million dividend to its private equity sponsor. “While the amount is small relative to the total size of the capital structure, the company has made three primarily debt-funded acquisitions during the course of 2019, which has significantly increased our expectation of leverage,” said S&P in a press release.

As a result of the dividend and increased acquisition spend, S&P said it expects Maxim’s adjusted debt to EBITDA to increase to the mid-5x range, with FFO to total debt ratio in the in the 10%-11% range in the next 12 months.

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