S&P changes Osmose Utilities view

S&P said it affirmed its B corporate credit rating on Osmose Utilities Services Inc. and revised the outlook to negative from stable.

At the same time, the agency affirmed the B issue-level rating on the company's upsized first-lien term loan due in August 2022. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default.

In addition, S&P affirmed the CCC+ issue-level rating on the company's upsized second-lien term loan due in August 2023. The 6 recovery rating indicates an expectation for negligible recovery (0%-10%; rounded estimate: 0%).

S&P said the negative outlook reflects a view that the incremental debt tied to Osmose's proposed transaction will weaken the company's credit measures over the next 12 months.

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