U.S.-based boiler, burner, and heating system manufacturer Cleaver-Brooks Inc.'s sales volumes and margins underperformed relative to our previous forecast, primarily due to intensifying competition and pricing pressure, rising material costs, and operational inefficiencies. On Sept. 12, 2019, S&P Global Ratings is lowering the issuer credit rating on Cleaver-Brooks to 'B-' from 'B'. At the same time, we are lowering our issue-level rating on the company's senior secured notes to 'B-' from 'B'. The '4' recovery rating is unchanged. The stable outlook reflects our view that the company will generate modest free cash flow and maintain adequate liquidity over the next 12 months, despite our expectations for weak credit metrics and leverage sustained above 7x. Greater-than-expected volume declines constrained margins and
