S&P puts Production Resource on positive watch

Standard & Poor's said it placed the B- corporate credit rating for Production Resource Group LLC on CreditWatch with positive implications.

The agency also said it assigned a rating of B- to the company's new $400 million senior unsecured notes due 2019. The rating is one notch below its expected corporate credit rating if the transaction closes.

Also assigned to this debt was a preliminary recovery rating of 5, indicating 10% to 30% expected recovery in a default.

The proceeds will be used to refinance its existing capital structure.

The ratings reflect an expectation that the company's leverage will remain high, its financial policy will remain aggressive and that it will require high capital expenditures for growth, S&P said.

The ratings also consider an expectation that the company will continue to benefit from the economic recovery, the agency said, and grow as a result of recent acquisitions.

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