Fitch affirms SK Blue, loans

Fitch Ratings said it affirmed the long-term issuer default ratings of SK Blue Holdings, LP and its indirect wholly owned subsidiary, Polar US Borrower, LLC, at B.

The agency also affirmed the BB-/RR2 rating for Polar's proposed first-lien senior secured revolver and first-lien senior secured term loan and withdrew the CCC+/RR6 rating on Polar's previously considered second-lien senior secured term loan.

The outlook is stable.

Fitch said it views SK Blue's decision to revise its capital structure as a credit-friendly move that will improve the company's initial gross leverage ratio and likely lead to quicker deleveraging over the medium term.

The company intends to eliminate the originally planned $250 million senior secured second-lien term loan and replace it with a $50 million increase in the first-lien term loan and $200 million of preferred equity issued to its sponsor SK Capital Partners LP.

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