S&P: Tecomet loans B, CCC+

Standard & Poor’s said it assigned a B corporate credit rating to Tecomet Inc.

The outlook is stable.

The agency also said it assigned a B rating with 3 recovery rating to the new $580 million first-lien credit facility, which includes an undrawn $60 million revolving credit line.

The 3 recovery rating reflects an expectation of 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating with 6 recovery rating to the new $190 million second-lien credit facility. The 6 recovery rating reflects 0 to 10% expected default recovery.

The ratings reflect an expectation that Tecomet’s leverage will remain at more than 5x over the next few years and that the combined company will remain a relatively small player in the context of the broad contract manufacturing space, despite its leading market position within the orthopedic precision manufacturing niche, the agency said.

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