S&P rates TWCC loans BB-

Standard & Poor's said it assigned TWCC Holding Corp.'s proposed $1.72 billion credit facilities its issue-level rating of BB- with a recovery rating of 2, indicating 70% to 90% recovery for lenders in a default.

The facilities consist of a $1.6 billion term loan due 2017 and a revolving credit facility of up to $120 million, which includes a non-extended class due 2014 and an extended class due 2016.

The proceeds will be used to refinance its existing term loan and to redeem its senior subordinated notes, which are not rated by S&P.

The agency also said it affirmed its B+ corporate credit rating and revised its outlook to positive from stable.

The positive outlook reflects an expectation that TWCC's financial performance and credit metrics could improve enough over the next year so that the company will be able to lower its lease-adjusted leverage to less than 5.5x through EBITDA growth and debt reduction, S&P said.

The ratings also consider its business concentration and its high debt leverage since its September 2008 leveraged buyout, the agency said.

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