S&P rates Pro Mach, loan B+

Standard & Poor's said it assigned its B+ corporate credit rating to Pro Mach Inc.

At the same time, the agency said it assigned its B+ issue-level rating to the company's $255 million senior secured credit facility, comprising a $35 million revolver due 2016 and a $220 million term loan due 2017, with a recovery rating of 3.

The outlook is stable.

"The ratings on Pro Mach reflect its aggressive financial risk profile and its weak business risk profile," said S&P credit analyst Peter Kelly.

"The company operates in the competitive and highly fragmented industry packaging equipment industry, and its scope of operations is relatively narrow, marked by limited diversity in end-markets and its mainly North American presence. These factors are partially offset by the company's sizable installed base, its breadth of integrated packaging solutions and its low capital intensity."

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