S&P rates KLX loan BBB-

Standard & Poor’s said it assigned its BB corporate credit rating to KLX Inc. The outlook is stable.

At the same time, S&P assigned a BBB- issue-level rating to the company’s proposed $500 million secured revolving credit facility, with a 1 recovery rating, indicating an expectation for very high (90%-100%) recovery in a simulated default scenario.

“The rating on KLX reflects a fairly conservative capital structure following the spinoff from B/E Aerospace, but also the potential for future acquisitions that could require increased debt,” said S&P credit analyst Chris Mooney in a news release.

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