S&P: Sonneborn view stable

Standard & Poor's said it revised its outlook on Sonneborn Holdings LP (formerly OEP Holdings LP) to stable from positive and affirmed its B corporate credit rating on the company.

At the same time, S&P affirmed its B issue ratings and 3 recovery ratings on the company's senior secured debt. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%) in the event of a payment default.

"The outlook revision reflects our expectation that Sonneborn's leverage-related credit metrics will not improve at the rate we previously anticipated, but will remain appropriate for the current rating," said S&P credit analyst Paul Kurias in a news release.

"We believe that the key ratio of funds from operations to total debt will be in the 10% to 12% range after we factor in the potential for some debt funding of growth initiatives and slower growth in EBITDA and cash flow than we previously anticipated," he said.

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