S&P affirms HUB, rates loans B+

Standard & Poor's said it affirmed its B counterparty credit rating on HUB International Ltd. The outlook is stable.

At the same time, the agency said it assigned its B+ issue-level rating to the company's planned senior secured term loans, consisting of a $731 million term loan B at LIBOR plus 450 basis points due June 2017, a $196 million incremental term loan B at LIBOR plus 475 bps due December 2017 and $100 million U.S. revolver at LIBOR plus 450 bps due June 2016.

The agency said it assigned the debt a recovery rating of 2, indicating an expectation for a substantial recovery for lenders in the event of a payment default.

The agency said it also revised the recovery rating on HUB's existing senior secured credit facilities to 2 and raised the issue ratings on this debt to B+ from B in accordance with S&P's notching criteria for recovery ratings.

Lastly, the agency said it affirmed the CCC+ senior unsecured debt rating on the company's unsecured facilities. The unsecured recovery rating is 6.

"The counterparty credit rating affirmation on HUB reflects the fact that the company's total debt levels will remain unchanged following the proposed debt offerings, because the planned senior secured term loan and revolving credit facilities are extensions and repricings of HUB's existing senior secured facilities of the same dollar amount," said S&P credit analyst Julie Herman in a news release.

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