S&P rates Michael Baker toggle notes B-

Standard & Poor's said it affirmed all of the ratings on Michael Baker International LLC and its debt issues, including the B+ corporate credit rating.

The outlook is stable.

S&P also said it assigned a B- rating and 6 recovery rating to the proposed $125 million senior payment-in-kind toggle notes due 2019 issued by parent company Michael Baker Holdings LLC. Michael Baker Holdings will use the proceeds for a distribution to the sponsor.

The 6 recovery rating indicates 0% to 10% expected default recovery.

The B+ rating and 3 recovery rating on the company's $350 million senior secured notes are unchanged. The 3 recovery rating indicates 50% to 70% expected default recovery.

The ratings reflect the company's fair business risk profile, incorporating its diversified contract and task orders from the U.S. federal agencies, state and local governments and commercial and international clients, S&P said.

The ratings are offset by the company's short track record operating at the current revenue level and competition against larger players in a highly fragmented industry, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.