S&P ups Kellermeyer loan to B

S&P said it affirmed the B- corporate credit rating on Kellermeyer Bergensons Services LLC. The outlook is stable.

The agency also raised the issue-level rating on the company's first-lien credit facility to B from B-. The 2 recovery rating was revised from 3, indicating an expectation for substantial recovery (70%-90%; rounded estimate: 75%) in the event of default.

S&P affirmed the CCC issue-level rating on the company's second-lien term loan. The 6 recovery rating is unchanged, indicating an expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of default.

The agency said the affirmation reflects its assessment of the company’s high debt leverage and sponsor ownership, its small albeit growing size, narrow business focus, and participation in the highly competitive and fragmented outsourced janitorial services industry.

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