S&P assigns B- to Ozburn-Hessey loan

Standard & Poor's said it affirmed its B- corporate credit rating on Ozburn-Hessey Holding Co. LLC. The outlook is stable.

S&P also assigned a B- issue rating to the company's new credit facility, which consists of a $50 million revolving credit facility and a $270 million term loan B. The recovery rating on the new facility is 4, indicating an expectation that lenders would receive average recovery (30%-50%) in the event of a payment default.

"Our ratings on Ozburn-Hessey reflect its improved operating performance in 2012 and our expectation that the company will continue to benefit from efficiency improvement and business development initiatives over the next few years," said S&P credit analyst Lisa Jenkins in a news release.

However, S&P said it also believes that it will take time for the company to achieve all of its expected benefits, especially in the current economy.

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