S&P rates Authentic Brands loans B+, CCC+

Standard & Poor's said it assigned its B corporate credit rating to Authentic Brands Group LLC.

The outlook is stable.

At the same time, the agency assigned a B+ issue rating (one notch above the corporate credit rating) to the company's $365 million first-lien term facility (composed of a $30 million revolver and $335 million first-lien term debt) with a recovery rating of 2, indicating that lenders could expect substantial (70% to 90%) recovery in the event of a payment default or bankruptcy.

S&P also assigned its CCC+ issue rating (two notches below the corporate credit rating) to the company's $130 million second-lien facility with a recovery rating of 6, indicating that lenders could expect negligible (0% to 10%) recovery in the event of a payment default or bankruptcy.

ABG Intermediate Holdings 2 LLC is the issuer of the revolver and the first- and second-lien term loans.

S&P said the ratings reflect its view that the company's financial profile is "highly leveraged" given the company's heavy debt structure and our estimates of pro forma leverage in the mid-6x area at the close of the proposed transaction.

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