Moody’s cuts Clean Harbors loan to Ba1

Moody's Investors Service said it affirmed Clean Harbors, Inc.'s Ba2 corporate family rating, Ba2-PD probability of default rating and the ba3 rating on the senior unsecured notes due 2021 and downgraded the senior secured term loan B rating to Ba1 from Baa3.

The downgrade of the senior secured rating reflects the anticipated impact from the company's announcement to upsize its senior secured term loan B by $350 million to help repay $400 million of senior unsecured notes scheduled to mature 2020, Moody’s said.

With the repayment of the unsecured notes, the secured term loan, now at nearly $750 million, receives less benefit from unsecured debt, totaling $845 million on a pro forma basis, that will provide first-loss cushion in the event of a default.

Additionally, the agency affirmed the speculative grade liquidity rating at SGL-2.

The outlook is stable.

Moody's said it took no action on and expects to withdraw the Ba3 senior unsecured rating on the notes maturing in 2020 upon closing of this proposed transaction.

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