S&P rates Edwards Group B+

Standard & Poor's said it affirmed the B+ long-term corporate credit rating on Edwards Holdco Ltd. and subsequently withdrew the rating.

The agency also said it assigned a B+ long-term corporate credit rating to Edwards Group Ltd., the group's new holding company.

The outlook is stable.

S&P also said it affirmed all issue ratings on the group's outstanding debt. The recovery ratings are unchanged.

The actions follow the flotation of the group's new holding company, Edwards Group Ltd., in May 2012, the agency said.

S&P said it anticipates a moderate improvement in the group's credit metrics from the proceeds of the initial public offering, which is likely to be more than offset by weaker revenue and margins trends over the coming quarters.

The ratings continue to reflect an assessment of the group's business risk profile as weak and its financial risk profile as aggressive, the agency said.

The ratings remain constrained by the group's vulnerability to the highly cyclical semiconductor equipment industry, intense competitive pressure and technology risks inherent to the high-precision manufacturing industry, S&P said.

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