S&P lifts Ameriforge loan

Standard & Poor's said it affirmed its B long-term corporate credit rating on Ameriforge Group Inc., doing business as AFGlobal Corp., and its B+ issue rating on the company's first-lien senior secured term loan. The recovery rating on the first-lien term loan remains 2, indicating an expectation for substantial (70% to 90%) recovery in the event of a payment default. The outlook is stable.

At the same time, S&P raised the issue rating on the company's second-lien term loan debt to B- from CCC+, reflecting improved recovery prospects for second-lien lenders under S&P's payment default scenario, primarily based on higher shared claims between first- and second-lien lenders given 35% of Special Flanges' stock will be unpledged. The recovery rating was revised to 5 from 6, indicating an expectation of modest (10% to 30%) recovery in the event of a payment default.

"The stable rating outlook reflects our expectation that revenue growth from new product offerings and strong demand in its offshore E&P segment will continue to drive operating performance and enable the company to improve profitability and strengthen credit measures from current levels in line with our forecast. We also expect liquidity will remain adequate over the next 12 to 24 months," said S&P credit analyst Mark Salierno in a news release.

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