S&P rates Ashtead loan BB-

Standard & Poor's said it affirmed its B+ long-term corporate credit rating on Ashtead Group plc following the group's announcement of a proposed $675 million loan facility. The outlook is stable.

At the same time, S&P assigned its BB- long-term rating to the group's proposed five-year senior secured asset-backed loan facility, subject to final documentation. The proposed facilities were also assigned a recovery rating of 1.

"The ratings on Ashtead reflect the group's highly leveraged financial structure and our expectation of minimal free cash flow generation after capital expenditures. In addition, our view of the industry as being fragmented, highly competitive, and with limited forward visibility of demand remains," said S&P credit analyst Jarrad Oberhardt.

"These risks are tempered by the group's generally sound market positions in the U.K. and U.S. and the diversity of its customer base."

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