Standard&Poor's Ratings Services' ratings on Thomasville, Ga.-based Cleaver-Brooks Inc. reflect the company's position operating in a highly fragmented and competitive industry, as well as its highly leveraged financial risk profile. The privately owned company refinanced its debt by issuing new notes in May 2010 and used part of the proceeds to pay a dividend to its sponsor. Somewhat offsetting these limitations are the company's leading position in the niche market for mid-to-large commercial and industrial boilers. It also has a strong distribution network consisting of exclusive sales representatives and has a well-known brand name and reputation. Primarily based in the U.S., with about 80% domestic sales, Cleaver-Brooks is a sole manufacturer of integrated boiler, burner, and control solutions.
