S&P rates Koosharem, loan B-

Standard & Poor's said it assigned a B- corporate credit rating and stable outlook to Koosharem Corp.

At the same time, the agency said it assigned a bank loan rating of B- and a recovery rating of 3 to Koosharem's $300 million bank loan facilities, consisting of an $85 million revolving credit facility due 2011 and a $215 million term loan B due 2012.

S&P noted that the ratings reflect significant integration risk associated with acquiring underperforming RemedyTemp and Koosharem's small earnings base, high leverage and limited geographic diversity.

Partially offsetting these concerns are Koosharem's potential to achieve cost-saving synergies through the acquisition, its possible receipt of additional liquidity from its workers' compensation insurance carrier loosening the company's collateral commitments and its position in California, S&P added.

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