S&P rates Safety-Kleen loan BB-, ups view to stable

Standard & Poor's said it affirmed the B+ corporate credit rating on Safety-Kleen Systems Inc. and revised the outlook to stable from negative.

The agency also said it assigned a BB- rating to the company's proposed $150 million first-lien revolving credit facility due 2017 and $250 million term loan due 2017.

The revolver and loan have a recovery ratings of 2, indicating 70% to 90% expected recovery in a default.

Safety-Kleen's debt maturity profile is expected to become more manageable following the completion of the refinancing transaction, S&P said.

The stable outlook also considers an expectation that continued economic recovery, strength in oil prices and operating efficiencies will enable the company to continue to generate credit metrics that are appropriate for the rating, the agency said.

The ratings reflect the company's aggressive financial risk profile due to its equity being controlled by financial sponsors, which raises some uncertainty with respect to financial policies, S&P added.

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