S&P rates CommScope loans BB-

Standard & Poor's said it assigned BB- ratings to CommScope Holding Co., Inc.'s first-lien term loans B.

S&P said the rating reflects the company's "fair" business risk profile and "aggressive" financial risk profile.

The business risk profile is based on CommScope's meaningful market share and favorable long-term demand fundamentals in its selected end markets and good geographic diversity, but also its limited revenue visibility in a cyclical operating environment and exposure to volatile raw material pricing.

The financial risk profile acknowledges the company's strong free operating cash flow generation capabilities and adequate liquidity, but also its potential for volatile free operating cash flow in times of macroeconomic stress and its moderately acquisitive growth strategy.

© 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.