S&P rates Hub, loan B, notes CCC+

Standard & Poor's said it assigned its B counterparty credit rating to Hub International Ltd.

The outlook is stable.

At the same time, the agency said it assigned its B senior secured debt rating to Hub's proposed $775 million of senior secured credit facilities, which consist of a $675 million term loan B and a $100 million revolver.

In addition, S&P said it assigned its CCC+ senior unsecured debt rating to Hub's proposed $395 million senior unsecured notes and its CCC+ senior subordinated debt rating to Hub's proposed $395 million senior subordinated note issuances.

The proceeds will be used to finance a proposed $1.9 billion acquisition of Hub by a group of private investors led by Apax Partners, the agency noted.

According to S&P, the ratings on Hub reflect its significantly deteriorated financial flexibility following the proposed issuance of debt to finance the acquisition and low-quality balance sheet because of large amounts of goodwill and intangibles.

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