S&P assigns Hub loan 2, ups loan to B+

Standard & Poor's said it assigned recovery ratings of 2 to Hub International Ltd.'s (B/stable) $625 million senior secured term loan B due 2014, its $140 million senior secured delayed draw term loan due 2014 and its $100 million revolving credit facility due 2013.

The 2 recovery rating indicates that the lenders can expect substantial recovery in the event of payment default, the agency said.

As a result of this rating action, S&P said it also raised its issue rating on these facilities to B+ from B, one notch higher than the counterparty credit rating, adding that the proceeds from these credit facilities had been used to finance a $1.9 billion acquisition of Hub by Apax Partners.

These rating actions reflect S&P's review of a simulated default scenario, which contemplates a payment default resulting from heightened financial pressures and reduced financial flexibility following its acquisition by Apax Partners, as Hub's debt leverage increased to 68% following the leveraged buyout from 18% as of year-end 2006.

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