S&P: Columbus McKinnon view to positive

Standard & Poor's said it affirmed its B corporate credit rating on Columbus McKinnon Corp. and revised the outlook to positive to reflect improvement in the company's operating performance and credit measures.

S&P said the ratings on Columbus McKinnon reflect its highly leveraged financial profile, including its weak (albeit improving) credit protection measures and weak overall business profile. Material handling is a cyclical and fragmented industry.

However, the company has leading positions in several niche markets: It holds either the No. 1 or No. 2 position in the material-handling, lifting, and positioning-products industries, and 75% of sales come from markets where it is the leading supplier, the agency noted.

Total debt to EBITDA remained aggressive at 5.8x as of the end of the company's third fiscal quarter ended Jan. 2, 2005 and is expected to improve to about 5.5x in the near term. EBITDA to interest coverage was about 1.5x at Jan. 2 and is expected to strengthen to about 2x.

The senior secured rating is B- and the subordinated rating is CCC+.

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