Moody's affirms Kenan Advantage

Moody's Investors Service said it affirmed Kenan Advantage Group, Inc.'s Ba3 rating on its amended senior secured credit facility, along with its corporate family rating at Ba3 and probability of default rating at B1.

The outlook is stable.

Kenan's credit facility has been amended primarily to increase its size to cover recent and expected future acquisitions, Moody's said.

The term loan due 2016 has been increased to $375 million from $250 million, the revolving credit facility due 2015 has been increased to $100 million from $75 million, while the delayed draw term loan due 2016 remains at $125 million, Moody's said.

The proceeds will be used to repay borrowings outstanding under the revolving credit facility as well as the existing delayed draw term loan, to finance a recent acquisition and to increase the company's cash balance.

The ratings consider Kenan Advantage's leading position as a provider of liquid bulk transportation services and logistics to the fuels, chemical and food markets with nationwide service, Moody's said, and the relative stability of earnings and cash flow that the company has experienced throughout the economic cycle.

The rating also reflects its sizeable, but manageable amount of debt that the company carries resulting from the June 2010 acquisition by the equity sponsors, the agency said.

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