S&P assigns Citation loans B+, CCC+

Standard & Poor's said it assigned its B corporate credit rating to Citation Corp., reflecting the company's vulnerable business profile as a manufacturer of cast parts for the challenging automotive and industrial equipment industries and its highly leveraged capital structure.

At the same time, Citation's $80 million secured revolving credit facility was rated B+ with a recovery rating of 1 and its $180 million secured term loan was rated CCC+ with a recovery rating of 4, the agency added.

The outlook is stable.

S&P noted the company emerged from bankruptcy in May and during bankruptcy, the company was able to negotiate improved pricing on its customer contracts, allowing most to become profitable.

These measures improved the company's profitability and lowered operating risks, but the company continues to have a vulnerable business profile because of the challenges of its end markets, the agency added.

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