S&P assigns B- to Ahern notes

Standard & Poor's said it assigned a B corporate credit rating to equipment rental company Ahern Rentals Inc. and a B- rating to Ahern's proposed $175 million senior secured notes due 2013 with a recovery rating of 3.

The outlook is positive.

S&P said the ratings on Ahern Rentals reflect its weak business profile operating in a highly fragmented and competitive industry with limited diversity.

The agency added the business is also highly capital intensive, as the company must make ongoing large equipment purchases and Ahern has limited financial flexibility. Partially offsetting these risks is the company's good regional presence in fast-growing markets in the U.S. southwest, particularly in Las Vegas, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.