S&P rates Koosharem loan B-

Standard & Poor's said it assigned a B- corporate credit rating to Koosharem LLC.

The agency also said it assigned a B- rating to the company's $370 million first-lien term loan due 2020 exit financing with a recovery rating of 4, indicating 30% to 50% expected default recovery.

The outlook is stable.

The proceeds, along with new cash equity of $229 million, will be used to satisfy all claims and outstanding obligations of the company in accordance with its Ch. 11 bankruptcy reorganization, S&P said.

The ratings reflect the company's vulnerable business risk profile and highly leveraged financial risk profile following the company's May 16 emergence from bankruptcy protection and completion of its financial restructuring, the agency said.

Koosharem's position as a smaller-size player in the highly fragmented, competitive and cyclical temporary staffing industry affects the ratings, S&P said.

The competitive nature of the staffing industry and the company's size expose Koosharem to competitive pricing pressures from much larger players with greater operating efficiencies, the agency said.

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