S&P rates Summit Materials loan BB-, notes B

Standard & Poor's said it assigned a BB- corporate credit rating on Summit Materials LLC, along with a BB- rating on its proposed $550 million senior secured bank credit facilities, which are expected to consist of a $150 million revolving credit facility due in 2017 and a $400 million term loan due 2019.

The outlook is stable.

The recovery rating is 3, which indicates 50% to 70% expected recovery in a default.

The agency also said it assigned a B rating to the company's proposed $220 million eight-year senior unsecured notes. The recovery rating is 6, indicating 0% to10% expected recovery in a default.

The ratings reflect the company's weak business risk and aggressive financial risk, S&P said.

The aggressive financial risk assessment reflects Summit's continued execution of an acquisition strategy that has increased the company's size, profitability and geographic diversity and debt burden, the agency said.

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