S&P assigns KAR Holdings B-, loan B

Standard & Poor's said it assigned its B- corporate credit rating to newly formed KAR Holdings Inc., which is created to acquire the operations of Adesa Inc. and Insurance Auto Auctions Inc.

In addition, S&P said it assigned its loan and recovery ratings to KAR's proposed $1.79 billion senior secured credit facility, adding that the facility is rated B, one notch higher than the corporate credit rating, with a recovery rating of 1, indicating a strong expectation for full recovery of principal in event of default or bankruptcy.

The credit facilities will be comprised of an undrawn $300 million revolving credit line expiring in April 2013 and a $1.49 billion term loan B due in October 2013, the agency said.

At the same time, S&P said it lowered the corporate credit ratings on Adesa Inc. to B- from BB and on IAAI to B- from B.

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