S&P rates Oasis Outsourcing loans B, CCC+

Standard & Poor’s said it assigned its B corporate credit rating to Oasis Outsourcing Holdings Inc. The outlook is stable.

At the same time, S&P assigned an issue-level rating of B to Oasis’ new $50 million senior secured revolving credit facility and $160 million senior secured first-lien term loan. The recovery rating is 3, reflecting an expectation of meaningful (50%-70%) recovery for lenders in case of a payment default.

S&P also assigned a CCC+ issue-level rating to the company’s new $60 million senior secured second-lien term loan. The recovery rating on this term loan is 6, reflecting an expectation of negligible (0-10%) recovery for lenders in the case of a payment default.

S&P said its ratings on Oasis reflect its view that the company has a significant debt burden, aggressive financial policy, and narrow business focus in the highly competitive and fragmented HR outsourcing services industry. Pro forma for the transaction, leverage will be around 6x.

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