S&P assigns B+ to Post Holdings notes

S&P said it assigned its B+ issue-level rating and 4 recovery rating to Post Holdings Inc.'s proposed senior unsecured notes due December 2029. The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 40%) recovery in the event of a payment default.

The B+ issue-level rating and 4 recovery rating (30%-50%) on Post's existing senior unsecured notes remain unchanged. These include the company's $1 billion 5½% notes due 2025, $400 million 8% notes due 2025, $1.75 billion 5% notes due 2026, $1.5 billion 5¾% notes due 2027 and $1 billion 5 5/8% notes due 2028. The increase in unsecured claims for this issuance changes the rounded recovery estimate to 40% from 45%.

The BB issue-level rating and 1 recovery rating on the company's $2.2 billion senior secured term loan B due 2024 also remain unchanged. The 1 recovery rating indicates an expectation for very high recovery (90%-100%; rounded estimate: 95%) in the event of a default.

All of the other ratings on the company, including the B+ issuer credit rating, are unaffected by this transaction, S&P said.

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