S&P: Kenan Advantage view negative

Standard & Poor's said it revised its outlook on Kenan Advantage Group Inc. to negative from stable and affirmed its B+ corporate credit rating.

At the same time, the agency affirmed all of its issue-level ratings on Kenan's outstanding debt as it expects that the debt will be refinanced as part of this transaction.

"The outlook revision follows Kenan's announcement that it had entered into a definitive agreement to be acquired by Omers Private Equity, the private equity arm of the Omers pension plan," S&P credit analyst Michael Durand said in a news release.

"Although the terms of the acquisition are not yet public, we believe that the company's pro forma adjusted debt-to-EBITDA metric could increase."

Kenan has indicated that it expects the acquisition to close in third-quarter 2015, subject to customary closing conditions including regulatory approvals, the agency said.

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