S&P assigns BB- to Deck Chassis notes

S&P said it assigned its BB- corporate credit rating to Deck Chassis Acquisition Inc. The outlook is stable.

At the same time, S&P assigned a BB- issue-level rating and 3 recovery rating on the company’s proposed $325 million senior secured notes. The 3 recovery rating indicates an expectation of meaningful (50%-70%; lower half of the range) recovery in a payment default scenario.

“Our ratings on Deck Chassis Acquisition Inc., the parent of DCLI [Direct ChassisLink, Inc.], are based on the company’s position as one of the largest marine cargo chassis lessors in an industry with only three major participants and its aggressive financial risk profile following its debt-financed acquisition by EQT Infrastructure II mainfund (which is managed by the private-equity firm EQT Infrastructure II NV),” said S&P credit analyst Jeff Ward in a news release.

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