S&P rates Synagro loan B+

Standard & Poor's said it assigned its B corporate credit rating to STI Infrastructure Sarl, the indirect parent and guarantor of operating companies Synagro Infrastructure Co. Inc., Synagro Rail Inc. and Synagro Drilling Inc.

The outlook is stable.

At the same time, the agency assigned a B+ issue-level rating (one notch above the corporate credit rating) and a 2 recovery rating to the $215 million senior secured term loan due 2020.

The revolving facility due 2018, which was downsized to $50 million from $65 million in the initial plan, is unrated.

"The ratings on Synagro reflect our assessment of its business risk profile as weak and its financial risk profile as highly leveraged," S&P credit analyst James Siahaan said in a news release. "We assess its management and strategy as fair."

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