S&P affirms Ashtead

Standard & Poor's said it affirmed the B+ rating on the $550 million second-lien notes due 2016 issued by Ashtead Group plc.

The recovery rating on these notes is unchanged at 5, indicating 10% to 30% expected recovery in a default.

The affirmation follows news that Ashtead will increase the size of its asset-based loan facility to $1.8 billion from $1.4 billion, S&P said.

The agency said it calculates that the increase will not affect recovery prospects for Ashtead's $550 million second-lien notes due 2016. This is because S&P said it anticipates that any utilization of the increased borrowing capacity will allow Ashtead to grow its asset base and thereby compensate for the asset-based loan lenders' higher prior-ranking claim at default.

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