S&P affirms Milk, ups secured debt

Standard & Poor’s said it affirmed its B- corporate credit rating on Milk Specialties Co. and removed all ratings from CreditWatch, where S&P had placed them with negative implications on Nov. 3 following the company’s technical default under its credit agreement for failing to timely file its financial statements.

The outlook is stable.

At the same, S&P raised the issue-level ratings on the company’s senior secured debt to B from B- and revised the recovery rating to 2L from 3, indicating an expectation of substantial (70% to 80%) recovery for lenders in the event of a payment default.

“The CreditWatch removal and corporate credit rating affirmation reflect the company’s recent amendment to its credit agreement, which waives the covenant default and provides covenant relief, as well as our opinion that operating performance and cash flows will steadily improve in 2015 as whey and milk input costs decline,” said S&P credit analyst Kim Logan in a news release.

© 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.