S&P rates SiteOne loan B

Standard & Poor’s said it assigned a B corporate credit rating to SiteOne Landscape Supply Inc.

The agency also said it assigned a B rating to the company’s proposed $350 million first-lien term loan due 2021. The recovery rating is 3, indicating 50% to 70% expected default recovery.

The debt will be held by the company’s subsidiaries and co-borrowers, JDA Holding LLC, which will be renamed SiteOne Holding LLC, and John Deere Landscapes LLC, which will be renamed SiteOne Landscape Supply LLC.

The outlook is stable.

The stable outlook reflects an expectation that SiteOne will maintain debt-to-EBITDA between 5x and 6x over the next 12 months, S&P said.

Although the agency said it assumes some improvement in 2016 given expectations of continued growth in U.S. residential and nonresidential construction, forecasted adjusted leverage is expected to remain at more than 5x next year.

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