S&P upgrades Synagro

Standard & Poor's said it raised the corporate credit rating on Synagro Technologies Inc. to CCC+ from SD, its $115 million second-lien term loan to CCC- from D with 6 recovery rating and its $390 million senior secured first-lien facilities to CCC+ from CC with 3 recovery rating.

The outlook is negative.

"Today's rating actions reflect our reassessment of default risk and recovery prospects under the new capital structure after Synagro's purchase and retirement of about $35 million in face value of second-lien debt for a cash consideration of approximately $14 million. The SD corporate credit rating reflected our view that the exchange was distressed with the debtholders receiving a value significantly less than par," S&P analyst Ket Gondha said in a statement.

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