S&P ups, rates Kenan loans B

S&P said it assigned B ratings to Kenan Advantage Group Inc.’s planned $150 million revolving credit facility and $1 billion term loan due 2026, with 2 recovery ratings, indicating an expectation of substantial (70%-90%; rounded estimate: 75%) recovery in default.

Kenan will use the proceeds to refinance its capital structure and improve its debt maturity profile, which S&P said helped lead it to upgrade Kenan to B- from CCC+. The other factor was its good operating performance.

Concurrently, the agency upgraded Kenan’s unsecured notes to CCC from CCC-. The recovery rating remains '6', indicating an expectation of negligible (0%-10%, rounded estimate 5%) recovery.

The outlook is stable.

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