S&P lowers Kenan Advantage

S&P said it lowered its corporate credit rating on Kenan Advantage Group Inc. to B from B+. The outlook is stable.

At the same time, S&P cut its issue-level ratings on Kenan's senior secured credit facilities to BB- from BB. The 1 recovery rating remains unchanged, indicating an expectation for very high recovery (90%-100%) in the event of a payment default.

Additionally, S&P lowered its issue-level rating on Kenan's $405 million senior unsecured notes to CCC+ from B-. The 6 recovery rating remains unchanged, indicating an expectation for negligible recovery (0-10%) in the event of a payment default.

“The downgrade reflects Kenan Advantage’s underperformance relative to our forecast over the past year and our expectation that its elevated debt leverage will not improve materially over the next 12 months,” said S&P credit analyst Michael Durand in a news release.

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