S&P affirms Gavilon

Standard & Poor's said it affirmed the BB corporate credit rating on the Gavilon Group LLC.

The outlook is negative.

The agency also said it affirmed the company's BBB- rating on Gavilon's $2.75 billion asset-based lending revolving credit facility, for which the maturity will be extended by one year to 2014.

The recovery rating on this debt remains unchanged at 1, indicating 90% to 100% expected recovery in a default.

S&P also affirmed the BB+ rating on the company's $775 million first-lien term loan maturing 2016. The recovery rating on this debt remains unchanged at 2, indicating 70% to 90% expected recovery in a default.

The outlook reflects concerns that the agribusiness company's recently weak operating performance may continue, particularly in the company's energy trading segment, the agency said.

The ratings consider the company's fair business risk profile and significant financial risk profile, S&P said.

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