TEXT-S&P: Scotsman Industries rating off from watch, rating withdrawn
Overview -- Scotsman Industries Inc. has been acquired by broadly diversified food equipment manufacturer ALI Group. -- We are removing our ratings on Scotsman, including our 'B+' corporate credit rating, from CreditWatch with positive implications, where they were placed on Nov. 7, 2012, following news of the pending purchase. -- We are subsequently withdrawing all of our ratings on Scotsman at the company's request based on the repayment of its outstanding bank debt. Rating Action Dec. 14, 2012, Standard & Poor's Ratings Services removed its ratings on Vernon Hills-Ill.-based ice machine manufacturer Scotsman Industries Inc., including our 'B+' corporate credit rating, from CreditWatch with positive implications. We had placed the ratings on CreditWatch on Nov. 7, 2012. All debt outstanding has been repaid, and we are subsequently withdrawing our ratings at the request of the company. We indicated that when the bank debt outstanding was repaid at the close of the deal we would withdraw our ratings on this debt. Rationale We placed the ratings on CreditWatch with positive implications based on our view of potential improvement in credit quality following the purchase by ALI Group. Our view was supported by the strategic acquisition by a much more broadly diverse global food service equipment manufacturer that should enhance the business risk profile and by less aggressive financial policies absent private equity ownership. Related Criteria And Research -- Scotsman Industries Inc. 'B+' Rating Placed On CreditWatch Positive After Acquisition Announcement, Nov. 7, 2012 -- Use Of CreditWatch And Outlooks, Sept. 14, 2009 -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 Ratings List Ratings Removed from CreditWatch To From Scotsman Industries Inc. Corporate Credit Rating B+/Stable/-- B+/Watch Pos/-- Senior Secured B+ B+/Watch Pos Recovery Rating 3 3 Ratings Withdrawn To From Scotsman Industries Inc. Corporate Credit Rating NR B+/Stable/-- Senior Secured NR B+ Recovery Rating NR 3 Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
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