S&P lowers K2 Pure loan

Standard & Poor's said it lowered its preliminary rating on K2 Pure Solutions NoCal LP's $121.5 million senior secured term loan maturing in 2015 to B from BB-.

At the same time, the agency said it revised the recovery rating on the term loan to 2 from 1.

The outlook is stable.

The rating change is due to an increase in the amount of debt and a higher interest rate, which resulted in the company's greater reliance on merchant revenue to meet its debt service payments and maintain contractual terms with the project's creditors, the agency noted.

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