S&P rates Smart & Final loans BB-, B, CCC+

Standard & Poor's said it affirmed the B corporate credit rating on Smart & Final Holdings Corp.

The agency also said it removed all of the ratings from CreditWatch with negative implications, where they were placed Oct. 15.

The outlook is negative.

S&P also said it assigned a BB- rating and 1 recovery rating to the company's proposed $150 senior secured asset-backed limited revolving credit facility, two notches above the corporate credit rating.

The 1 recovery rating indicates 90% to 100% expected recovery in a default.

The agency also said it assigned a B rating and 3 recovery rating to the company's proposed $510 senior secured first-lien term loan. The 3 recovery rating indicates 50% to 70% expected recovery in a default.

S&P also assigned a CCC+ rating and 6 recovery rating to the proposed $210 million second-lien term loan. The 6 recovery rating indicates 0% to 10% expected recovery.

This action comes as Smart & Final is procuring financing to fund its purchase by Ares Management, said Charles Pinson-Rose, an S&P analyst. The transaction will add significant financial leverage, he said.

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