S&P assigns syncreon loan B-, ups rating

S&P said it assigned a B- rating with a recovery rating of 2 to syncreon Group Holdings BV’s new $125.5 million first-out senior secured term loan and rating the $225 million second-out senior secured term loan CCC- with a recovery rating of 6.

The agency also upgraded to CCC+ from SD its issuer credit rating on syncreon and assigned a CCC+ issuer credit rating to syncreon Group BV, the intermediate holding company.

“The upgrade reflects syncreon’s significant reduction in leverage following the completion of its debt exchange offer and no near-term debt maturities. However, we still view syncreon’s capital structure as unsustainable over the longer term because of the company’s reliance on favorable business and economic conditions to be able to viably generate positive free operating cash flow,” said S&P in a press release.

The outlook is stable.

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