S&P rates Kenan loan BB-

Standard & Poor's said it affirmed the B+ corporate credit rating on Kenan Advantage Group Inc.

The agency also said it assigned BB- ratings to Kenan Advantage's $125 million revolver, $430 million term loan, C$100 million term loan and $100 million delayed-draw term loan. The agency also assigned 2 recovery ratings, indicating 70% to 90% expected default recovery.

The company's B- rating on the $350 million upsized senior unsecured notes, after including a $150 million add-on, remain unchanged with a 6 recovery rating, indicating 0% to 10% expected default recovery.

The outlook is stable.

The ratings reflect Kenan Advantage's improved geographic and product diversity, as well as the addition of RTL-Westcan Group's more profitable operations, said Anita Ogbara, an S&P analyst.

These benefits were partially offset by the addition of $210 million in debt to finance the acquisition, Ogbara said.

Still, over the next year, the agency said it expects stable demand for petroleum products and accretive acquisitions will improve Kenan Advantage's credit metrics.

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