S&P rates ATI loans B, CCC+

Standard & Poor’s said it assigned a B corporate credit rating to ATI Holdings Acquisition Inc.

The agency also said it affirmed the B corporate credit rating on ATI Holdings Inc. and withdrew the rating, along with its B rating with 3 recovery rating on its senior secured debt.

The agency also said it assigned a B rating to the $70 million revolving credit facility and $635 million first-lien term loan. The recovery rating on this debt is 3, indicating 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating to the company’s second-lien debt. The recovery rating on the second-lien debt is 6, indicating 0 to 10% expected default recovery.

The outlook is stable.

The ratings reflect the company’s weak business risk profile and highly leveraged financial risk profile, the agency said.

ATI’s business risk is characterized by its concentrated geographic presence, vulnerability to economic cycles, low barriers to entry and an ambitious growth strategy, S&P said.

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