Good positions in niche market segments; and Long-standing customer relationships with industry leading original equipment manufacturers (OEMs). Modest scope of operations serving cyclical end markets; Customer concentration; High debt leverage and thin cash flow protection; and Refinancing risk and additional cash interest payments associated with ultimate parent Stanadyne Holdings Inc.'s notes. Standard & Poor's Ratings Services' ratings on Windsor, Conn.-based Stanadyne Corp. (Stanadyne) primarily reflect our view that credit measures will improve from very weak levels and our understanding the company has the ability under its credit agreement to upstream dividends to parent Stanadyne Holdings Inc. to service pay-in-kind (PIK) notes through February 2012. Stanadyne remains highly leveraged, with adjusted debt to EBITDA of more than 9x, by our calculation,...
Companies mentioned in this report are:
- Stanadyne Corp.
- Stanadyne Holdings Inc.
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