S&P: Keurig Green Mountain BB-

Standard& Poor's said it assigned a BB- corporate credit rating to Keurig Green Mountain Inc.

The outlook is stable.

The agency also said it withdrew the ratings on Maple Holdings Acquisition Corp., including its BB- corporate credit rating.

S&P also said it affirmed the BB ratings on the company's senior secured debt, which was transferred from Maple Holdings Acquisition to Keurig Green Mountain.

The debt is comprised of a $500 million revolver due 2021, $3.175 billion term loan A due 2021, $1.775 billion term loan B due 2023 and a €842 million term loan B due 2023.

The 2 recovery rating is unchanged, indicating 70% to 90% expected default recovery.

The ratings reflect the company's high financial leverage following the leveraged buyout, deleveraging focus, leading position in single-serve coffee brewers and K-Cups in the United States, S&P said.

The ratings also consider the company’s participation in the fastest growing sector of the coffee industry and lack of product and geographic diversity, the agency said.

Keurig has a very strong domestic position in the niche single-serve coffee segment, which is the fastest-growing segment in the coffee market, S&P said.

Although the coffee sector is highly competitive and fragmented, Keurig should continue to benefit from increasing penetration rates in the United States, the agency added.

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