S&P rates ABB/Con-Cise loans B, CCC+

Standard & Poor’s said it affirmed the B corporate credit rating on ABB/Con-Cise Optical Group LLC and revised the outlook to negative from stable.

The agency also said it assigned a B rating to the company’s proposed $500 million first-lien credit facilities, consisting of a $100 million five-year revolver and $400 million seven-year term loan, with a recovery rating of 3, indicating 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating to the proposed $150 million eight-year second-lien term loan with a recovery rating of 6, indicating 0 to 10% expected default recovery.

ABB/Con-Cise Optical Group expects to pay a $269 million debt-financed dividend to its owners in conjunction with its proposed $650 million credit facilities, which also will refinance its existing debt-capital structure, the agency said.

ABB will reduce its ratio of debt-to-EBITDA to less than 7x over the next 12 months through debt repayment and EBITDA growth, partly reflecting the non-recurrence of certain strategic initiatives, S&P said.

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