S&P affirms KBR facility, revises recovery

S&P said it affirmed its B+ issue-level rating on KBR Inc.'s senior secured credit facility and revised the recovery rating to 3 from 4.

The recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in a default scenario.

The facility comprises a $500 million revolving credit facility due 2023, a $500 million performance LC facility due 2023, a $350 million delayed-draw term loan A due 2023 and an $800 million term loan B due 2025.

“The improved recovery expectations reflect that we no longer expect the company to fully draw the $350 million delayed draw term loan A, which they are using primarily to fund additional costs on the troubled Ichthys project, resulting in a lower level of secured debt,” the agency said in a news release.

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